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