Tariff Impacts on Consumer Spending Power, Low-Income Households, and the Flawed Economics of a $2000 Tariff Dividend - BORDERLINE ECONOMICS 12/19/2025
Despite Administration claims that tariffs are paid by suppliers, data shows that 20% of tariff costs have already been passed to consumers, and the 2018 trade war research indicates that 100% of costs will eventually be passed through. Tariffs and resultant price increases will result in a 1700 dollar cost to the average household and significant increase in federal tax burdens, which disproportionately harm lower-income families. The Administration’s proposed $2000 tariff dividend will cost more than tariff revenue generated in both 2025 and 2026, raising questions for deficit spending, the financing of the Big Beautiful Bill, and short term prices.
