New Tariffs Will Likely Deepen Economic Burdens for Women of Color

Among the plethora of federal layoffs catalyzed by the Department of Government Efficiency’s (DOGE’s) federal spending cuts, women and people of color have been disproportionately targeted. Now, economists and advocates warn, they will be further burdened by the Trump administration’s proposed tariffs.

The US Court of International Trade ruled on May 28 that Trump’s sweeping tariffs exceeded his authority. The next day a federal appeals court temporarily reinstated them, saying it was pausing the lower court’s ruling to consider the government’s appeal.

As businesses and consumers wait to see what happens, Valerie Wilson, director of the Program on Race, Ethnicity, and the Economy at the Economic Policy Institute told NPQ that “part of the problem is that there is so much chaos and uncertainty associated with Trump’s policies and tariff policy in particular.” This uncertainty makes it harder to maintain a stable economy: “We can’t really get a grasp on where things are headed or what the general direction is, [and that is in] itself, a risk to the economy,” she said.

The Allianz Trade Global Survey of 4,500 companies in nine countries—including the United States, the United Kingdom, and China—found that only 22 percent said they can absorb the increased costs due to the imposed tariffs. Fifty-four percent said they will have to raise prices to accommodate. The rising costs will not be evenly felt but will have a disproportionate impact on people who are already struggling to make ends meet, including women of color.

“Part of the problem is that there is so much chaos and uncertainty associated with Trump’s policies and tariff policy in particular.”

Wilson cited recent analysis by The Budget Lab at Yale University that showed that the current 22.5 percent tariff rate is the highest since 1909, which will translate into losses of $3,800 for the average consumer. For low-income earners who live paycheck to paycheck, it will represent an annual loss of $1,700.

The new tariffs will force low-income women of color to pay a higher share of their income on many everyday items, including groceries, cars, car repairs, and household appliances. Moreover, while companies like those in the  may benefit with higher employment capacity, Wilson noted that women of color are largely underrepresented in these industries and will find a crowded job market in other places like the service industries. 

“I don’t think that the tariffs hit everyone equally. I think that women and especially women and nonbinary people of color that are already paid less and spend more of their income on their basic needs are going to be hit the hardest,” said Ashley Panelli, co-president and CEO of 9to5, in an interview with NPQ.

9to5, a national grassroots organization with chapters in Colorado, Georgia, and Wisconsin helps women and nonbinary workers of color organize around economic justice.

“Even before the tariffs, people were saying that they can’t afford childcare,” Panelli pointed out. “People are saying that they can’t afford their rent, that they can’t afford their groceries, that they can’t afford their medical bills.” 

“I don’t think that the tariffs hit everyone equally.”

Moreover, women in general are subjected to a 3 percent “pink tariff”—higher costs on products and services targeted to women like clothing, deodorant, and menstrual care. “It’s ongoing for our members that they are stretched thin by our economic system,” said Panelli, adding that in addition, women and nonbinary people of color still face workplace issues—wage gaps, rampant sexual harassment, and discrimination—that will only be exacerbated under the new tariffs.

A key strategy at 9to5 is easing the economic burden that women and nonbinary people of color face, from campaigns to help lower utility bills, to creating pathways for everyday constituents to push Congress to fund childcare. The group also has active paid family and medical leave campaigns in each of the states where they operate.

“It’s ongoing for our members that they are stretched thin by our economic system.”

One 9to5 member who wants to empower families to secure their economic futures is Atlanta-based Deborah Truitt, who through her company Mommy Mean Bizness educates women of color to help them become entrepreneurs and homeowners. Truitt is also advocating for increased funding for Georgia’s Childcare and Parent Services (CAPS) program, which assists low-income families with childcare costs. 

Thanks to a fellowship program with 9to5, Truitt is working to get a nearby recreational center that the community relies on for afterschool care to accept CAPS. As a mother, she understands firsthand that resources are stretched thin, leaving many families to choose between employment and childcare. Truitt believes that if the rec center could accept CAPS it would help with resources at the center and also ease the economic burden of families.