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US: U.S. tariffs drive up household costs, squeezing working, middle-class families

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Storyline: Tariffs imposed by the U.S. government on imports from countries such as China, Mexico, and Canada are squeezing household budgets, leaving working and middle-class American families struggling to afford everyday essentials. In recent months, the return and expansion of tariffs have contributed to noticeable price hikes across a wide range of imported goods, including some of the most essential commodities like groceries and fuel. As a result, consumers are changing their shopping habits, turning to wholesale retailers and cutting back on non-essential purchases. A study from the Budget Lab at Yale University found that the cost of fresh produce alone initially rose by 5.4 percent due to the tariffs, with prices stabilizing at 3.9 percent higher in the long term. Experts warn that these increases disproportionately affect lower-income households, which spend a greater share of their income on basic necessities. Shotlist: FILE: Washington D.C., USA - Oct 2024: 1. Various of White House FILE: New York City, USA - Oct 2024: 2. Various of buildings, traffic Los Angeles, California, USA - Recent: 3. Various of resident loading groceries onto car 4. SOUNDBITE (English) Gabriel Garcia, Los Angeles resident: "Of course I'm worried, like we work really hard for everything we work for, and then just to come over here and obviously have to adjust certain things to get. We obviously see the increase of prices on everything." FILE: Los Angeles, California, USA - April 7, 2025: 5. Residents walking with shopping carts 6. Residents loading groceries onto car Los Angeles, California, USA - Recent: 7. SOUNDBITE (English) Kimberly Clausing, professor, Tax Law and Policy, UCLA School of Law: "Poor people tend to spend almost all of their income because they can't afford to do a lot of savings and as you go up and up that income ladder, more and more of income gets saved and the part that saved isn't bearing the burden of the tariff. And hopefully the tariffs will be gone by the time someone gets around to using their savings down the road. But in the meantime, we have got this effect where the share of the income that you're spending on the tariffs is going be much higher for a poor person than for a rich person." FILE: Los Angeles, California, USA - Date Unknown: 8. Containers, vessel at port 9. Various of crane moving container at port; trucks. [Restrictions : No access Chinese mainland]

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