Robin Hood in Reverse: How Trump’s Tariffs Steal from the Poor to Subsidize the Rich

by Kino Smith

A Tax Disguised as Protectionism

Donald Trump campaigned on promises to lower inflation and ease financial burdens for everyday Americans. Now, he's flipping the script—proposing steep tariffs that could drive up prices, fuel inflation, and hit Black communities the hardest.[1]

Even Elon Musk—stated that Americans must 'embrace temporary hardship' before economic recovery, warning that Trump's policies could cause short-term economic pain before any potential gains.[2] (Vox) Treasury Secretary Janet Yellen has also acknowledged that tariffs contribute to inflation.[2] Yet, Trump’s plan doubles down on economic isolationism, with everyday Americans, particularly those at the margins, shouldering the cost while corporations reap the benefits.

Tariffs may sound like they target foreign companies, but in reality, they function as a hidden tax on consumers. When businesses are forced to pay more for imported goods, those costs get passed down the supply chain—meaning higher prices at the register for all of us. And those at the bottom of the economic ladder—Black Americans and low-income families—feel the impact first and worst.[3]

Tariffs: A Wealth Transfer from the Poor to the Rich

The problem with tariffs is simple: they raise the price of everything they touch.

Trump’s proposed 25% tariffs on imports from Canada and Mexico, along with a 10% tariff on all Chinese goods, would drive up the cost of electronics, cars, groceries, and industrial materials.[4]

History tells us what happens next:

• The Smoot-Hawley Tariff Act of 1930 worsened the Great Depression by raising import costs and triggering retaliatory tariffs that crippled global trade.[5]

• Trump’s 2018 trade war with China forced U.S. companies to pay an extra $46 billion in costs, driving up prices on everyday goods.[6]

• A 2022 study from the National Bureau of Economic Research (NBER) found that tariffs from the U.S.-China trade war raised consumer prices by 1.4% annually.[7]

How This Hurts Black America

Tariffs aren’t just economic policy—they’re a direct attack on communities already struggling to make ends meet:

• Higher prices on essentials – Businesses will raise prices to offset higher import costs, meaning everything from food to transportation will become more expensive.[8]

• Fewer job opportunities – As companies struggle with rising expenses, hiring freezes and layoffs will hit Black workers hardest.[9]

• A bigger wealth gap – Black households already earn $48,000 in median income compared to $77,000 for white households and spend a higher share of their paychecks on essentials.[10]

  
  

No safety net is coming. There’s been no major legislation to address Black economic inequality—no reparations, no wealth-building initiatives, and no targeted relief to counteract policies that disproportionately hurt Black communities.

America’s Economic Bullying is Backfiring

For decades, the U.S. has relied on cheap labor and resources from developing nations to maximize corporate profits. Now that those nations are growing stronger, America’s response is economic bullying—using tariffs to punish countries it once exploited.

The Global Economy is Moving Without the U.S.

• BRICS nations (Brazil, Russia, India, China, and South Africa) now control 35% of global GDP—surpassing the U.S. and its allies, who sit at 28%.[11]

• Key economic players like Indonesia, Saudi Arabia, and the UAE are aligning with BRICS, not the U.S.[12]

• China is already dominating the electric vehicle (EV) market—producing high-quality EVs at half the price of U.S. brands. Instead of allowing fair competition, Trump (and Biden before him) slapped a 100% tariff on Chinese EVs, forcing Americans to overpay for lower-quality vehicles.[13]

  
  

In Europe, Chinese EVs are everywhere. In the U.S.? Blocked by tariffs.

Meanwhile, other nations are adapting. Europe, Africa, and Asia are forging new trade relationships that don’t rely on the U.S. Yet instead of innovating, the U.S. is clinging to outdated isolationist policies, making American businesses less competitive in the global economy.

Black America Will Feel the Pain First—And Worst

Economic downturns never start on Wall Street—they start in Black America. History shows us what happens when the economy collapses:

• During COVID-19, Black unemployment peaked at nearly 17%, while white unemployment remained significantly lower.[14]

• During the 2008 financial crisis, Black homeownership and Black wealth collapsed, setting families back decades.[15]

• 
  

With tariffs driving up prices and shrinking job opportunities, we’re on track for another financial crisis that disproportionately hits Black communities.

How to Fight Back

While Washington plays politics with economic policies that disproportionately hurt Black families, we can take action to protect ourselves.

• Leverage resale markets – Buy and sell used electronics, parts, and appliances to avoid inflated retail prices.

• Practice collective capitalism – Pool resources with others to negotiate bulk discounts and offset rising costs.

• Buy direct from suppliers – Seek alternative markets and suppliers outside of tariff-heavy zones.

• Support Black-owned businesses – Strengthen local economies and create job opportunities within our communities.

• Advocate for trade alternatives – Push for policies that prioritize fair trade and economic justice over corporate handouts.

  
  

The system is stacked against us, but history proves that collective action and strategic resourcefulness create economic resilience. Tariffs are just another tool in a long history of policies that shift wealth upward, leaving Black America to foot the bill.

It’s time to push back.

Footnotes:

1. SEC EDGAR: https://www.sec.gov/edgar.shtml

2. Federal Reserve (FRED): https://fred.stlouisfed.org/

3. Small Business Administration (SBA): https://www.sba.gov/

4. Federal Reserve Beige Book: https://www.federalreserve.gov/monetarypolicy/beigebook/default.htm

5. Earnings Reports & Investor Calls (Various)

6. Washington Informer: https://www.washingtoninformer.com/

7. NPR Economic Reports: https://www.npr.org

8. D-Mars Financial Analysis: https://d-mars.com

9. Federal Reserve Research Papers (Various)

10. Federal Reserve Economic Data (FRED)

11. BRICS GDP Reports (World Bank)

12. Trade Policies & Tariffs (OECD)

13. China EV Market Data (Bloomberg)

14. COVID-19 Unemployment Data (BLS)

15. 2008 Financial Crisis Reports (Federal Reserve)