A new study from Yale University’s Budget Lab is sounding the alarm. The report investigates how recent U.S. tariffs are hitting everyday Americans, especially women and low income households. The study examines all tariffs enacted through April 2, 2025. It paints a clear picture of just how regressive and burdensome these trade policies may become.
Tariffs Are Costing Families
According to the analysis, these tariffs act like a hidden tax on consumers, raising household costs across the board. On average, families can expect to spend an additional $3,800 per year. That uptick is due to increased prices on goods affected by tariffs. For working-class families, especially those led by women, the additional cost could be the tipping point between stability and struggle.
Low-Income Households Bear the Brunt
The data shows that the financial hit is much heavier for those earning less. Households with incomes between $30,000 and $60,000 could see a 4 percent drop in disposable income. Higher earners bringing in $175,000 or more would experience only a 1.6 percent decline. This means the same policy disproportionately burdens women and communities of color, who are more likely to fall into the low-income bracket.
Essential Items Are Getting Way More Expensive
The Yale Budget Lab study shows that tariffs are causing price hikes on a range of everyday goods. The impact is being felt hardest on essentials. Apparel prices are expected to rise by as much as 17 percent, fresh produce by 4 percent and new vehicle costs by more than $4,000 due to an 8.4 percent spike linked to tariffs. These increases hit women particularly hard, especially those managing household budgets or raising children.
What This Means for Women of Color and Working Moms
Multiple sources confirm that women are the primary decision-makers for household spending. According to a 2019 Nielsen report, women drive 70 to 80 percent of all consumer purchasing decisions including groceries, clothing, healthcare and child-related expenses. The report emphasized that “women are the world’s most powerful consumers, and their impact on the economy is growing.”
Likewise, the Harvard Business Review’s article, “The Female Economy,” reports that women control $20 trillion in global annual consumer spending and are “increasingly the decision-makers in households” when it comes to essential goods and services.
When prices on essentials, like food, clothing, and transportation rise, it’s women, especially those leading households or managing on a tight budgets, who feel it first and most intensely. These tariff-driven increases force tough choices and financial trade-offs that can impact everything from nutrition to childcare to mental well-being. For single mothers and women in low-income households, this financial pressure is especially acute.
For Black women and other women of color who are already navigating financial headwinds, this study is a reminder that economic decisions at the national level are never neutral. They ripple directly into homes, wallets and lives.