Former economic adviser Gary Cohn said Sunday that President Trump‘s tariffs will be “highly regressive” and disproportionately hurt lower-income Americans.
Speaking on CBS News’s Face the Nation, Cohn said Trump’s tariffs will mostly impact people earning under $200,000 annually because they spend nearly all their income on goods, many of which will rise in price due to the tariffs.
“Poorer people end up paying a disproportionate percentage of the tariffs,” Cohn explained. “Wealthier people save a bigger percentage of their paycheck.”
Cohn, now vice chair of IBM, added that the full effects of the tariffs will start being felt within weeks due to the product distribution cycle.
Trump posted online Sunday that lower-income Americans would see income tax reductions or eliminations as tariffs take effect. However, Cohn argued that the benefits of tax cuts may be offset by the higher cost of goods.
Trump’s new tariffs, announced April 2, have faced resistance from China, which has refused to agree to a new trade deal.
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