U.S. Midsize Firms Face $82.3 Billion Cost Due to Ongoing Tariffs

A recent analysis by the JPMorgan Chase Institute reveals that U.S. companies may be poised to incur an additional cost burden of $82.3 billion due to the ongoing tariffs currently in place. This financial impact comes at a critical time as many midsize firms navigate their economic landscape. According to the report, midsize businesses—representing roughly one-third of both private sector revenue and employment—could see an increase of $2,080 more per employee in costs, translating to a payroll increase of about 3% at the current tariff rates. Should these tariffs return to the levels established during U.S. President Donald Trump's administration, specifically termed “Liberation Day,” the expected costs could more than double, primarily due to increased tariffs imposed on China and various other Asian countries. The analysts emphasize the pivotal role that midsize firms play in both regional economies and national supply chains. They caution that the repercussions of these tariffs could spark a detrimental "ripple effect," negatively affecting local businesses and consumers alike while also reducing government tax revenues. — Brendan Ruberry