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Trump’s Trade War Hits Black America Hardest as Tariffs Drive Up Costs

NNPA NEWSWIRE — For many in Black communities, the cost of that “pain” is far from abstract.

Published

2 months ago

February 3, 2025

Stacy M. Brown

By Stacy M. Brown
NNPA Newswire Senior National Correspondent
@StacyBrownMedia

President Donald Trump’s latest round of tariffs—25% on imports from Canada and Mexico and 10% on imports from China—has sent shockwaves through global markets, sparking retaliatory measures from trade partners and raising concerns about the economic strain on American consumers. But for Black Americans, already facing disproportionate financial burdens, the fallout could be devastating. “Will there be some pain? Yes, maybe (and maybe not!),” Trump said in a statement. “But we will Make America Great Again, and it will all be worth the price that must be paid.”

For many in Black communities, the cost of that “pain” is far from abstract. Chaniqua Jones, a schoolteacher in New York, is already struggling with budget cuts in her district. “First, consider that most of our students struggle with necessities like food and shelter, and many tell us that if they can’t work, they can’t eat,” she said. “That and reduced school budgets that we’re already dealing with will hurt more because, something to remember, we can only use one vendor that the Department of Education approves for supplies, and that vendor can charge anything they want, including, if they choose, as much as $10 for a pencil.”

Jones’ concerns are echoed by business owners, truck drivers, and families who will feel the effects of higher prices in ways the White House appears to have ignored. Jonathan Dolphin, a truck driver from Pennsylvania, sees the changes already. “The trucking industry isn’t the same anymore,” he said. “Hauling heavier loads doesn’t pay us more, and the brokers still charge higher rates. Those people who voted for Trump now have to see how idiotic that was.” Fuel prices are among the biggest concerns for working-class Black Americans. Canada, the largest supplier of crude oil to the U.S., is now facing a 10% tariff on energy exports. Gas prices in some parts of the country are expected to rise by 30 to 70 cents per gallon, disproportionately impacting on lower-income families who spend a higher percentage of their income on transportation.

George McKenzie, a wildlife photographer in Florida, has already seen gas prices climbing. “I’m honestly worried about the price of gas and food going up,” he said. “As someone who travels frequently for work, any increase in fuel costs directly affects my livelihood.” Existing disparities in Black communities compound the economic damage from the tariffs. The median household income for African Americans in 2023 was $52,860—well below the national median of $74,580. The racial wealth gap, exacerbated by decades of discriminatory housing and employment policies, means Black families have fewer financial reserves to absorb rising costs.The tariffs also threaten the already fragile food security in Black communities. The U.S. imports 63% of its vegetables and 47% of its fruits and nuts from Mexico, and tariffs could push grocery prices even higher. Many predominantly Black neighborhoods already struggle with food deserts—areas with limited access to affordable, healthy food. Higher food costs could worsen the crisis.

“It’s already expensive to eat healthy where I live,” said Alicia Brown, a 28-year-old mother of two in Chicago’s South Side. “A gallon of milk is already $5. If they start charging more for fresh produce, people are going to have to make tough choices between food and rent.”

The auto industry, another key economic driver, is also set to take a hit. In 2023, the U.S. imported $69 billion worth of cars and light trucks from Mexico and $37 billion from Canada. Ford F-Series pickups and Mustang sports coupes rely on engines manufactured in Canada. Tariffs on auto parts will drive up costs, adding an estimated $3,000 to the price of some vehicles. For Black auto workers in cities like Detroit and Atlanta, job security is now in question. Many automakers are considering layoffs or plant closures if production costs soar. “We’re looking at a repeat of what happened in 2018 when Trump’s first tariffs led to layoffs,” said Maurice Richardson, a 58-year-old autoworker in Michigan. “Except this time, it’s going to be worse.”

The trade war has already drawn strong pushback from U.S. allies. Canadian Prime Minister Justin Trudeau called Trump’s move “short-sighted and reckless,” adding, “If he thinks Canada will just sit back and accept these tariffs without response, he is gravely mistaken.” Canada has announced its retaliatory measures, imposing a 25% tariff on $155 billion worth of U.S. goods. Mexico, meanwhile, has slammed Trump’s justification for the tariffs, with President Claudia Sheinbaum calling it “an unjustified economic attack.” Mexico has signaled it may retaliate with tariffs on American exports, including corn and soybeans—moves that would further impact U.S. farmers and lead to even higher grocery prices.

China, the third nation targeted by Trump’s new tariffs, has also vowed to take action. The Chinese Ministry of Commerce announced plans to file a complaint with the World Trade Organization, warning that “the U.S. has chosen a path of confrontation that will hurt American workers more than anyone else.” In Washington, Congress’s response has been swift. Senate Minority Leader Chuck Schumer criticized the tariffs. “It would be nice if Donald Trump could start focusing on getting the prices down instead of making them go up,” Schumer stated. “All tariffs are not created equal. Donald Trump is aiming his new tariffs at Mexico, Canada, and China, but they will likely hit Americans in their wallets. I am concerned these new tariffs will further drive up costs for American consumers.”

The senate leader continued:

“We should be focused on going hard against competitors who rig the game, like China, rather than attacking our allies. If these tariffs go into full effect, they will raise prices for everything from groceries to cars, to gas, making it even harder for middle-class families to just get by.” The economic storm created by Trump’s trade war is already brewing. The U.S. economy saw inflation drop from its peak in 2022, but analysts now predict a sharp reversal, with costs climbing for everyday necessities. African Americans, who have historically been left behind in economic recoveries, are likely to bear the brunt of the damage. “This is what happens when policy is made without thinking about the people who will be most affected,” said Dr. Jamal Reed, a District of Columbia-based economist. “This isn’t just an inconvenience. It’s an economic disaster waiting to happen.”

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Recently Approved Budget Plan Favors Wealthy, Slashes Aid to Low-Income Americans

BLACKPRESSUSA NEWSWIRE — The most significant benefits would flow to the highest earners while millions of low-income families face cuts

Published

2 days ago

March 21, 2025

Stacy M. Brown

By Stacy M. Brown

BlackPressUSA.com Senior National Correspondent

The new budget framework approved by Congress may result in sweeping changes to the federal safety net and tax code. The most significant benefits would flow to the highest earners while millions of low-income families face cuts. A new analysis from Yale University’s Budget Lab shows the proposals in the House’s Fiscal Year 2025 Budget Resolution would lead to a drop in after-tax-and-transfer income for the poorest households while significantly boosting revenue for the wealthiest Americans. Last month, Congress passed its Concurrent Budget Resolution for Fiscal Year 2025 (H. Con. Res. 14), setting revenue and spending targets for the next decade. The resolution outlines $1.5 trillion in gross spending cuts and $4.5 trillion in tax reductions between FY2025 and FY2034, along with $500 billion in unspecified deficit reduction.

Congressional Committees have now been instructed to identify policy changes that align with these goals. Three of the most impactful committees—Agriculture, Energy and Commerce, and Ways and Means—have been tasked with proposing major changes. The Agriculture Committee is charged with finding $230 billion in savings, likely through changes to the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. Energy and Commerce must deliver $880 billion in savings, likely through Medicaid reductions. Meanwhile, the Ways and Means Committee must craft tax changes totaling no more than $4.5 trillion in new deficits, most likely through extending provisions of the 2017 Tax Cuts and Jobs Act. Although the resolution does not specify precise changes, reports suggest lawmakers are eyeing steep cuts to SNAP and Medicaid benefits while seeking to make permanent tax provisions that primarily benefit high-income individuals and corporations.

To examine the potential real-world impact, Yale’s Budget Lab modeled four policy changes that align with the resolution’s goals:

A 30 percent across-the-board cut in SNAP funding.
A 15 percent cut in Medicaid funding.
Permanent extension of the individual and estate tax cuts from the 2017 Tax Cuts and Jobs Act.
Permanent extension of business tax provisions including 100% bonus depreciation, expense of R&D, and relaxed limits on interest deductions.

Yale researchers determined that the combined effect of these policies would reduce the after-tax-and-transfer income of the bottom 20 percent of earners by 5 percent in the calendar year 2026. Households in the middle would see a modest 0.6 percent gain. However, the top five percent of earners would experience a 3 percent increase in their after-tax-and-transfer income.

Moreover, the analysis concluded that more than 100 percent of the net fiscal benefit from these changes would go to households in the top 20 percent of the income distribution. This happens because lower-income groups would lose more in government benefits than they would gain from any tax cuts. At the same time, high-income households would enjoy significant tax reductions with little or no loss in benefits.

“These results indicate a shift in resources away from low-income tax units toward those with higher incomes,” the Budget Lab report states. “In particular, making the TCJA provisions permanent for high earners while reducing spending on SNAP and Medicaid leads to a regressive overall effect.” The report notes that policymakers have floated a range of options to reduce SNAP and Medicaid outlays, such as lowering per-beneficiary benefits or tightening eligibility rules. While the Budget Lab did not assess each proposal individually, the modeling assumes legislation consistent with the resolution’s instructions. “The burden of deficit reduction would fall largely on those least able to bear it,” the report concluded.

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#NNPA BlackPress

A Threat to Pre-emptive Pardons

BLACKPRESSUSA NEWSWIRE — it was a possibility that the preemptive pardons would not happen because of the complicated nature of that never-before-enacted process.

Published

2 days ago

March 21, 2025

Oakland Post

By April Ryan

President Trump is working to undo the traditional presidential pardon powers by questioning the Biden administration’s pre-emptive pardons issued just days before January 20, 2025. President Trump is seeking retribution against the January 6th House Select Committee. The Trump Justice Department has been tasked to find loopholes to overturn the pardons that could lead to legal battles for the Republican and Democratic nine-member committee. Legal scholars and those closely familiar with the pardon process worked with the Biden administration to ensure the preemptive pardons would stand against any retaliatory knocks from the incoming Trump administration. A source close to the Biden administration’s pardons said, in January 2025, “I think pardons are all valid. The power is unreviewable by the courts.”

However, today that same source had a different statement on the nuances of the new Trump pardon attack. That attack places questions about Biden’s use of an autopen for the pardons. The Trump argument is that Biden did not know who was pardoned as he did not sign the documents. Instead, the pardons were allegedly signed by an autopen. The same source close to the pardon issue said this week, “unless he [Trump] can prove Biden didn’t know what was being done in his name. All of this is in uncharted territory. “ Meanwhile, an autopen is used to make automatic or remote signatures. It has been used for decades by public figures and celebrities.

Months before the Biden pardon announcement, those in the Biden White House Counsel’s Office, staff, and the Justice Department were conferring tirelessly around the clock on who to pardon and how. The concern for the preemptive pardons was how to make them irrevocable in an unprecedented process. At one point in the lead-up to the preemptive pardon releases, it was a possibility that the preemptive pardons would not happen because of the complicated nature of that never-before-enacted process. President Trump began the threat of an investigation for the January 6th Select Committee during the Hill proceedings. Trump has threatened members with investigation or jail.

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Reaction to The Education EO

BLACKPRESSUSA NEWSWIRE — Meanwhile, the new Education EO jeopardizes funding for students seeking a higher education. Duncan states, PellGrants are in jeopardy after servicing “6.5 million people” giving them a chance to go to college.

Published

2 days ago

March 21, 2025

Oakland Post

By April Ryan

There are plenty of negative reactions to President Donald Trump’s latest Executive Order abolishing the Department of Education. As Democrats call yesterday’s action performative, it would take an act of Congress for the Education Department to close permanently. “This blatantly unconstitutional executive order is just another piece of evidence that Trump has absolutely no respect for the Constitution,” said Rep. Maxine Waters (D-CA) who is the ranking member on the House Financial Services Committee. “By dismantling ED, President Trump is implementing his own philosophy on education, which can be summed up in his own words, ‘I love the poorly educated.’ I am adamantly opposed to this reckless action, said Rep. Bobby Scott who is the most senior Democrat on the House Education and Workforce Committee.

Morgan State University President Dr. David Wilson chimed in saying “I’m deeply concerned about efforts to shift federal oversight in education back to the states, particularly regarding equity, justice, and fairness. History has shown us what happens when states are left unchecked—Black and poor children are too often denied access to the high-quality education they deserve. In 1979 then President Jimmy Carter signed a law creating the Department of Education. Arne Duncan, former Obama Education Secretary, reminds us that both Democratic and Republican presidents have kept education a non-political issue until now. However, Duncan stressed Republican presidents have contributed greatly to moving education forward in this country.

During a CNN interview this week Duncan said during the Civil War President Abraham “Lincoln created the land grant system” for colleges like Tennessee State University. “President Ford brought in IDEA.” And “Nixon signed Pell Grants into law.” In 2001, the No Child Left Behind Act was signed into law by President George W. Bush which increased federal oversight of schools through standardized testing. Meanwhile, the new Education EO jeopardizes funding for students seeking higher education. Duncan states, PellGrants are in jeopardy after servicing “6.5 million people” giving them a chance to go to college. Wilson details, “that 40 percent of all college students rely on Pell Grants and student loans.”

Rep. Alma Adams (D-NC) says this Trump action “impacts students pursuing higher education and threatens 26 million students across the country, taking billions away from their educational futures. Meanwhile, During the president’s speech in the East Room of the White House Thursday, Trump criticized Baltimore City, and its math test scores with critical words. Governor West Moore, who is opposed to the EO action, said about dismantling the Department of Education, “Leadership means lifting people up, not punching them down.”