The impact Trump’s tariffs could have on the 2026 Social Security COLA

Though the senior rights organization, The Senior Citizens League (SCL), decreased their forecast for the 2026 Social Security Cost of living adjustment (COLA) this month, researchers are warning about the impact President Donald Trump’s sweeping tariffs could have on the financial well-being of older Americans.

The COLA is determined by the Social Security Administration using consumer price data, and with average prices falling in the index used by the agency, the 2026 benefit increase was reduced to 2.3 percent.

Nevertheless, noting the devastating effect of the announcement that punitive reciprocal tariffs would be imposed on some of the country’s largest trading partners, the stock market suffered. The decreases put dents in the retirement and savings accounts of workers and retirees, generating a great sense of fear for those who are inching closer to retirement or have already exited the workforce.

Pharma tariffs could hurt seniors, who are more likely to take medication

The White House’s pause on the implementation of reciprocal tariffs, which reduce the import duty to 10 percent for most countries as well as the exclusion of electronics from China (those goods are only being taxed at 20 percent upon import), have provided investors and traders with some relief. Nevertheless, the economic uncertainty generated by President Trump’s plan led the Senior Citizens League to call on the White House "to provide exemptions on critical products for seniors," including "drugs, medical equipment, and essential food items could soften the blow for seniors," if prices do begin to rise.

These actions are necessary, argued TSCL’s Executive Director Shannon Benton, warnings that " broad-based tariffs," like those imposed by the White House, "could have a profoundly negative impact on the daily lives of seniors, including the costs of drugs and medical equipment that many seniors rely on." Since many seniors live on a fixed income, their purchasing power can be badly damaged when prices rise quickly in the market, as they did in 2022.

On Monday afternoon, President confirmed to the press that he is planning to impose tariffs on pharmasuitcal products, which could increase prices for seniors. ING, the Dutch banking giant, estimated that even on generics, a 25 percent tariff increases annual spending on prescription drugs by $42.

As people get older, they tend to rely more on prescription drugs. Georgetown University found that while use between people 50 to 64 was around 75 percent, it climbed to 91 percent for people over 80. If drug prices increase, seniors could feel the pinch, and the SCL is urging the White House to take action to prevent such an outcome.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.