Gary Cohn, a previous economic adviser during the Trump administration, stated that the president’s tariffs were “highly regressive” and would adversely affect the lower-income populations the most.
Cohn appeared on CBS News’ “Face the Nation” on Sunday morning. If tariffs are curtailed following President Trump’s online announcement, individuals earning under $200,000 annually might experience income tax “Substantially reduced” or entirely removed.
“It’s important to grasp that tariffs are quite regressive. This indicates that low-income individuals will bear a disproportionate burden of tariffs as they allocate 100% of their earnings on goods,” Cohn stated.
Cohn, who departed from the Trump administration in 2018 and currently serves as vice-chairman of IBM, highlighted that lower-income Americans spend the majority, if not all, of their earnings on purchases.
“Affluent individuals tend to save a significant portion of their income,” he noted. “Thus, tariffs will disproportionately affect the poor.”
Cohn also contended that the effects of the tariffs will become apparent in the weeks leading up to the end of May.
He indicated that the product distribution cycle lasts about eight weeks, as the administration remains unyielding following the initial tariff increase in its ongoing confrontation with China. He remarked that the ramifications would soon emerge following Trump’s April 2nd “liberation day.”
“The repercussions of delays in bringing goods into this country won’t be sensed for another two to four weeks,” Cohn noted.
