Jun 4, 2019

Low-income Americans could be most affected by new U.S.-Mexico tariffs

Photo: Henry Nicholls - WPA Pool/Getty Images

Low-income and fixed-income Americans may bear the brunt of President Trump's newly announced tariffs on Mexican goods, AP reports.

The big picture: Trump announced last week that he plans to levy a 5% tax on Mexican imports, increasing that number up to 25% in the ensuing months if Mexico does not address the flow of immigrants at the southern border. As the cost of everyday goods rises, low- and fixed-income households are expected to take the biggest hit. Meanwhile, more well-off households may be unaffected by the incremental increase in costs.

  • Lower-income individuals would be hard hit because:
    • This demographic generally spends the majority (if not entirety) of their incomes, while wealthier Americans are able to save or invest their money.
    • Wealthier Americans are apt to spend on comforts that will not be tariffed. Those living closer to the poverty line spend a greater portion of their incomes on staples, including groceries and clothing — items that are often imported and therefore subject to tariffs.
  • Despite the potential consequences, White House acting chief of staff Mick Mulvaney said Trump is "deadly serious" about the tariffs.

What's next: At a press conference with Prime Minister Theresa May on Tuesday morning, Trump said he expects the tariffs to take effect next week.

Go deeper: How Trump's Mexican tariffs would impact goods in America

Go deeper

Updated 18 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11:30 p.m. ET: 6,889,889 — Total deaths: 399,642 — Total recoveries — 3,085,326Map.
  2. U.S.: Total confirmed cases as of 11:30 p.m. ET: 1,920,061 — Total deaths: 109,802 — Total recoveries: 500,849 — Total tested: 19,778,873Map.
  3. Public health: Why the pandemic is hitting minorities harder — Coronavirus curve rises in FloridaHow racism threatens the response to the pandemic Some people are drinking and inhaling cleaning products in attempt to fight the virus.
  4. Tech: The pandemic is accelerating next-generation disease diagnostics — Robotics looks to copy software-as-a-service model.
  5. Business: Budgets busted by coronavirus make it harder for cities to address inequality Sports, film production in California to resume June 12 after 3-month hiatus.
  6. Education: Students and teachers flunked remote learning.

George Floyd updates

Protesters in Washington, D.C. on June 6. Photo: Samuel Corum/Getty Images

Tens of thousands of demonstrators are rallying in cities across the U.S. and around the world to protest the killing of George Floyd. Huge crowds have assembled in Washington, D.C., Philadelphia and Chicago for full-day events.

Why it matters: Twelve days of nationwide protest in the U.S. has built pressure for states to make changes on what kind of force law enforcement can use on civilians and prompted officials to review police conduct. A memorial service was held for Floyd in Raeford, North Carolina, near where he was born. Gov. Roy Cooper ordered all flags to fly at half-staff to honor him until sunset.

Updated 3 hours ago - World

In photos: People around the world rally against racism

Despite a ban on large gatherings implemented in response to the coronavirus pandemic, protesters rally against racism in front of the American Embassy in Paris on June 6. Photo: Julien Mattia/Anadolu Agency via Getty Images

Tens of thousands of people have continued to rally in cities across the world against racism and show their support this week for U.S. demonstrators protesting the death in police custody of George Floyd.

Why it matters: The tense situation in the U.S. has brought the discussion of racism and discrimination onto the global stage at a time when most of the world is consumed by the novel coronavirus.