Part 5/9:
A crucial flaw in applying tariffs as a means of addressing these issues is their regressive nature. Unlike progressive taxation, which taxes higher earners at increased rates to alleviate financial burdens on the less fortunate, tariffs impose a flat tax-like charge on goods. This disproportionately impacts poorer individuals who spend a larger percentage of their incomes on basic goods.
For example, if tariffs increase the price of essential items, the burden of rising costs may disproportionately hurt low-income families compared to wealthier individuals who might be less affected by price increases in consumer goods.