Tariffs aren’t just bad for business and consumers: They will also increase the number of Americans living in poverty, according to new research.

An analysis out this week from The Budget Lab at Yale University found the Trump administration’s new 2025 tariff hikes will increase the number of Americans living in poverty by somewhere between 650,000 and 875,000 in 2026—that’s 0.2% to 0.3% of the U.S. population—including some 150,000 to 375,000 children.

“Because tariffs directly reduce the purchasing power of low-income households (either by decreasing nominal incomes or by increasing prices), they also affect poverty,” the report said.

Yale researchers used the Official Poverty Measure, a standard metric for calculating poverty based on pre-tax income, and the Supplemental Poverty Meas

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