Tariffs to cost companies $1.2 trillion this year, mostly hitting consumers, study finds
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.