US Inflation Widens Wealth Gap as Tariffs Hit Vulnerable Americans

Rising US Prices Could Widen Divide Between Haves and Have-Nots Accelerating inflation, driven in part by tariffs imposed by the Trump administration, is hitting some Americans harder than others, exacerbating a growing divide between the wealthy and those struggling to make ends meet. According to government data, businesses are increasingly passing on the costs of these tariffs to consumers, leading to higher prices for everyday items. For lower-income individuals like Yanique Clarke, a nursing student in Manhattan, the impact is already being felt. "Prices are really drastically high" for meat, vegetables, and fruit, she said while shopping at Target this week. "It's quite a while now, but it's getting higher." This sentiment is echoed by many Americans who are struggling to afford basic necessities. The inflation rate remains below its peak, but the trend is concerning economists and policymakers alike. A sustained rise in prices could have far-reaching consequences for the US economy, widening the gap between the haves and have-nots. "Inflation is a tax on the poor," said economist Mark Zandi of Moody's Analytics. "When prices rise, it's the lower-income households that are most affected." The tariffs imposed by the Trump administration have added to the upward pressure on prices. The US has implemented tariffs on over $250 billion worth of Chinese goods, which has led to retaliatory measures from Beijing. This trade war is having a ripple effect on global markets, driving up costs for businesses and consumers alike. Businesses are struggling to absorb the increased costs, leading them to pass on the burden to consumers. "We're seeing higher prices across the board," said David French, senior vice president of national affairs at the National Retail Federation. "It's not just a few specific products; it's a broad-based increase in prices." The impact is being felt most acutely by lower-income households who are already struggling to make ends meet. A recent survey found that 40% of low-income families reported cutting back on essential expenses, such as food and housing, due to rising costs. As the inflation rate continues to rise, policymakers will be closely watching the situation. The Federal Reserve has signaled its willingness to raise interest rates if necessary to combat inflation, but some economists warn that this could have unintended consequences for the economy. The current status of the US economy is one of uncertainty and volatility. As prices continue to rise, it remains to be seen whether policymakers can find a solution to mitigate the impact on lower-income households. One thing is clear: the divide between the haves and have-nots in the US is growing, and rising prices are only exacerbating the problem. Attributions: Yanique Clarke, nursing student in Manhattan Mark Zandi, economist at Moody's Analytics David French, senior vice president of national affairs at the National Retail Federation *Reporting by Bbc.*