US EditionTariff costs to companies this year to hit $1.2 trillion, with consumers taking most of the hit, S&P says
S&P Global analysis shows over $800 billion of the $1.2 trillion tariff cost will be passed to consumers, with companies bearing only one-third of the burden.
- S&P Global's white paper Thursday estimated President Donald Trump's tariffs will cost global businesses $1.2 trillion, with most costs passed to consumers.
- Earlier this year, the administration imposed a 10% tariff on all goods and removed the de minimis exception for goods under $800, adding duties on kitchen cabinets, autos and timber.
- S&P's data show a $907 billion hit to covered companies and a 64 basis point contraction in profit margins this year.
- Companies are responding by shifting and diversifying supply chains, including onshoring production to the United States, while UPS faces a customs backlog and retailers brace for 100 percent tariffs on Chinese goods starting November 1.
- Sandberg wrote that `With real output declining, consumers are paying more for less, suggesting that this two-thirds share represents a lower bound on their true burden`, while White House spokesman Kush Desai insisted exporters would ultimately bear the costs, which S&P says is only partly true.
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S&P Global: Americans May Pay Most of $1.2T Tariff Cost
A new S&P Global analysis warns that President Donald Trump's sweeping tariff agenda will impose as much as $1.2 trillion in costs in 2025, with roughly two-thirds passed directly on to U.S. consumers. The analysis showed that foreign exporters or corporations will not bear the brunt of the costs, according to CNBC. S&P Global projects that only about one-third of the tariff burden will fall on companies; households may shoulder the rest. Under …
Tariff costs to companies this year to hit $1.2 trillion, with consumers taking most of the hit, S&P says
President Donald Trump’s tariffs will cost global businesses upward of $1.2 trillion in 2025, with most of the cost being passed onto consumers, according to a new analysis from S&P Global.
Tariff Costs to Hit $1.2 Trillion
“President Donald Trump’s tariffs will cost global businesses upward of $1.2 trillion in 2025, with most of the cost being passed onto consumers,” CNBC reports. Analysis from S&P Global “says that just one-third will be borne by companies, with the rest falling on the shoulders of consumers, under conservative estimates.”
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