"Trump Tariff Policy Hits Low-Income Supporters in the US"

Analysis suggests that U.S. President Donald Trump's tariff policies will backfire on the American economy, severely impacting low-income households.

Bloomberg reported on the 11th (local time) that Trump's tariff policies will "hit low-income households harder, as they spend a larger portion of their expenses on purchasing goods and prefer cheaper imported products compared to the wealthy."

Accordingly, the U.S. Consumer Price Index (CPI) for February, to be released on the 12th, is considered an indicator to gauge the impact of tariffs. Analysts from Bank of America and BNP Paribas expect the February CPI report to show early signs of the additional tariff effects on Chinese-made furniture, clothing, and electronics.

The impact of tariffs already in place or to be implemented within the next few weeks on imports from China, Canada, and Mexico on prices of groceries, gasoline, and electricity is also expected to be felt within a few months.

As a result, major U.S. retailers such as Target and Best Buy are likely to consider price increases due to tariffs. Brian Cornell, CEO of Target, said in an interview with CNBC last week that while they have prepared various countermeasures for fruits and vegetables imported from Mexico during the winter, "if a 25% tariff is imposed, prices will rise."

Regarding these signs, Seth Basham of Wedbush Securities stated, "It is clear that this will have a greater impact on low-income consumers who are already struggling with inflation and high interest rates." From February 2020 to June last year, the rate of price increases for purchases by low-income households in the U.S. was higher than that of high-income households, leading to an analysis that low-income voters supported President Trump in last year's election because he pledged to control prices during the campaign.