U.S. Midsize Businesses Face $82.3 Billion Cost Increase from Tariffs

A recent analysis indicates that U.S. businesses may encounter an increase in expenses amounting to $82.3 billion due to existing tariffs. This study, conducted by the JPMorgan Chase Institute, highlights the significant financial burden faced by midsize companies, which represent nearly one-third of the private sector's revenue and employment. According to the findings, these midsize firms could see their costs rise by approximately $2,080 per employee, translating to an overall payroll increase of about 3%. This rise in operational costs is attributed to current tariff rates. Moreover, if tariffs were to revert to levels observed during President Donald Trump’s "Liberation Day," the anticipated financial impact would more than double, largely driven by escalated tariffs imposed on China and other Asian countries. Analysts note that the repercussions of such tariffs could extend beyond individual companies. The analysis stresses the "crucial" position of midsize firms within both regional economies and national supply chains. The imposition of higher tariffs could initiate a detrimental "ripple effect," adversely affecting local businesses and consumers alike, while also leading to a reduction in government tax revenues. — Brendan Ruberry