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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9 Articles
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.”
Tariff Burden Tops $1.2 Trillion in 2025, with Consumers Bearing the Brunt
A newly released S&P Global analysis estimates that U.S. companies will incur $1.2 trillion in additional costs from tariffs over the course of 2025, a burden experts warn is largely being shifted to consumers. The report, built on data from thousands of corporate analysts, finds that many firms underestimated the scale of tariff impacts at the start of the year. According to S&P, the suspension of the so-called “de minimis rule” — which had all…
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