The affordability crisis in the United States reflects a systemic issue in which the costs of housing, food, healthcare, childcare, and energy increase faster than incomes. As a result, over one-third of middle-class households are now struggling to meet their basic needs.

Recently, Trump signed an executive order imposing potential tariffs of up to 25% on countries that conduct business with Iran, reaffirming a national emergency. However, Peter Schiff, Chief Economist and financial commentator, has sounded the alarm, labeling it a disastrous move.

Schiff's caution is indicative of a broader institutional defect following the "Secondary Tariff" framework on February 6. According to an analysis released today by the Tax Foundation, Trump's 2026 tariff plan would result in an average annual tax hike of $1,300 for each American household.

Analysts at Goldman Sachs estimate that by mid-2026, these tariffs would increase inflation by 1%.

Meanwhile, Trump, who has been largely dismissing the affordability crisis as a Democratic 'con job,' had a social media meltdown after Schiff questioned his policies in December. “Why would Fox and Friends Weekend (of all things?) put on a ‘Stockbroker’ named Peter Schiff, a Trump-hating loser who has already proven to be wrong,” the president wrote on his Truth Social, before adding, “Either the show made a mistake, or it is heading in a different direction." Schiff responded with a scathing comment on X, saying, "Since Pres. Trump called me a jerk and a loser for claiming that prices are still rising when he insists they're coming way down. I challenge him, or his designee, to a debate on the U.S. economy and the efficacy of his policies. If I'm as wrong as he says I am, let him prove it."

As of early 2026, about 96% of U.S. tariffs are effectively paid by Americans, showing up as higher prices for importers and consumers.

https://marketrealist.com/how-is-trump-deepening-the-affordability-crisis/