Study: Tariffs to cost companies $1.2T this year, mostly hitting consumers

 

President Trump's tariffs will cost businesses more than $1.2 trillion this year, with most of that cost being passed on to consumers, according to a new study from S&P Global.

 

Why it matters: It's the latest sign that Americans will end up bearing the brunt of Trump's trade war.

• It also contributes to a picture of a much more difficult economy ahead.

 

Driving the news: In the study published on Thursday, S&P Global found that companies are now expected to pay at least $1.2 trillion more in 2025 expenses than they anticipated on Jan. 1, in what the researchers say is likely a conservative estimate.

• The researchers project that at least two-thirds of "expense shock" will be passed on to consumers, with the rest absorbed by companies.

 

By the numbers: The $1.2 trillion figure comes via data collected from 15,000 analysts across 9,000 companies.

 

What they're saying: "The sources of this trillion-dollar squeeze are broad," the researchers said in the report.

• "Tariffs and trade barriers act as taxes on supply chains and divert cash to governments; logistics delays and freight costs compound the effect," they wrote.
• "Collectively, these forces represent a systemic transfer of wealth from corporate profits to workers, suppliers, governments and infrastructure investors."

 

Zoom in: Trump's suspension of the "de minimis rule" this year increased the "squeeze" on companies, per the report.

• The rule, which meant that packages valued at less than $800 have enjoyed an exemption from added levies, allowed foreign online retailers like Temu and Shein to sell cheap items to American consumers.
• The suspension marked "a clear inflection in global trade costs."

 

The intrigue: AI lifted profit margins this year, the researchers noted, but tariffs "pulled them down."

 

Catch up quick: Trump has re-escalated trade tensions with China.

• The threats put imported cooking oil on the chopping block for consumers.
• The Yale Budget Lab estimated in August that Trump's latest tariffs will cost U.S. households $2,400 this year.

 

Source: Axios

https://www.axios.com/2025/10/16/trump-tariffs-cost-china

 

It’s not just the tariffs, the counter measures other nations are applying are hitting US businesses, particularly mid west family farms.

But where there’s bankruptcies there’s profit:

 

https://medium.com/@Democracy_Labs/how-do-jd-vance-and-peter-thiel-profit-from-trumps-tariffs-bankrupting-american-farmers-04f54a8dbc78

 

Do not worry GOP and MAGA people, Don and his billionaire friends are increasing their wealth.

16 hours ago, Schoggibueb said:

Tariffs and trade barriers act as taxes on supply chains and divert cash to governments;

 

13 hours ago, Chomper Higgot said:

But where there’s bankruptcies there’s profit:

 

https://medium.com/@Democracy_Labs/how-do-jd-vance-and-peter-thiel-profit-from-trumps-tariffs-bankrupting-american-farmers-04f54a8dbc78

 

21 minutes ago, JimHuaHin said:

Do not worry GOP and MAGA people, Don and his billionaire friends are increasing their wealth.

It is good to see such comments identifying and illustrating the broad and far reaching benefits of The Fragrant Leaders coherent foreign trade policies. His depth of understanding and amazing record of success in such matters is paying off!

 

And soon he will have a gilded room for his balls!

 

What more could America possibly wish for!

 

 

Imagine if these tariffs were a tax paid by US companies on the goods they import..........things could be so much worse.

 

 

1 hour ago, Will B Good said:

 

 

Imagine if these tariffs were a tax paid by US companies on the goods they import..........things could be so much worse.

 

 

Imagine if Trump were to give his idiot son a heads up on the target and timing of tariffs.

 

Said idiot son might make a fortune on such inside information.

How much will corporate income taxes cost US companies/consumers this year? 

 

It's worth noting that the data is from S&P Global, and it does not specify that it is US companies that will bear the brunt of the tariffs.

 

Consumers pay for all taxes on companies, why are corporate income taxes that hurt US companies good, while tariffs that benefit US companies bad? 

And why is it the most ignorant among us that insist Trump is stupid? And why when they are unable to formulate an actual argument, they call others stupid?

 

I am generally against the tariffs, for the same reason I am against corporate income taxes. But corporate income taxes are clearly worse for US companies than tariffs. 

10 minutes ago, Chomper Higgot said:

Imagine if Trump were to give his idiot son a heads up on the target and timing of tariffs.

 

Said idiot son might make a fortune on such inside information.

 

Same thing with the cryptos.

 

Scaramouch.....a $250,000,000 short on cryptos  placed 15 mins before an announcement made recently by Trump .....?????

 

How lucky can you get?

10 minutes ago, Will B Good said:

 

Same thing with the cryptos.

 

Scaramouch.....a $250,000,000 short on cryptos  placed 15 mins before an announcement made recently by Trump .....?????

 

How lucky can you get?

 

Probably Nancy Pelosi's husband.

Just now, blaze master said:

 

Probably Nancy Pelosi's husband.

 

Trump tipped him off?........Big of him I've got to say.

Just now, Will B Good said:

 

Trump tipped him off?........Big of him I've got to say.

 

Now you're catching on. Finally.

20 hours ago, Schoggibueb said:

Study: Tariffs to cost companies $1.2T this year, mostly hitting consumers

 

President Trump's tariffs will cost businesses more than $1.2 trillion this year, with most of that cost being passed on to consumers, according to a new study from S&P Global.

 

Why it matters: It's the latest sign that Americans will end up bearing the brunt of Trump's trade war.

• It also contributes to a picture of a much more difficult economy ahead.

 

Driving the news: In the study published on Thursday, S&P Global found that companies are now expected to pay at least $1.2 trillion more in 2025 expenses than they anticipated on Jan. 1, in what the researchers say is likely a conservative estimate.

• The researchers project that at least two-thirds of "expense shock" will be passed on to consumers, with the rest absorbed by companies.

 

By the numbers: The $1.2 trillion figure comes via data collected from 15,000 analysts across 9,000 companies.

 

What they're saying: "The sources of this trillion-dollar squeeze are broad," the researchers said in the report.

• "Tariffs and trade barriers act as taxes on supply chains and divert cash to governments; logistics delays and freight costs compound the effect," they wrote.
• "Collectively, these forces represent a systemic transfer of wealth from corporate profits to workers, suppliers, governments and infrastructure investors."

 

Zoom in: Trump's suspension of the "de minimis rule" this year increased the "squeeze" on companies, per the report.

• The rule, which meant that packages valued at less than $800 have enjoyed an exemption from added levies, allowed foreign online retailers like Temu and Shein to sell cheap items to American consumers.
• The suspension marked "a clear inflection in global trade costs."

 

The intrigue: AI lifted profit margins this year, the researchers noted, but tariffs "pulled them down."

 

Catch up quick: Trump has re-escalated trade tensions with China.

• The threats put imported cooking oil on the chopping block for consumers.
• The Yale Budget Lab estimated in August that Trump's latest tariffs will cost U.S. households $2,400 this year.

 

Source: Axios

https://www.axios.com/2025/10/16/trump-tariffs-cost-china

 

This is simply an assumption that US consumers will keep buying imported goods at the same rate that they did in 2024.

 

If the US consumers scale back on the amount that they buy then the figures will be less.

 

That does not mean that the consumers will buy US made goods, unless they are of the same standard, quality and price or better.