Tariff costs to companies this year to hit $1.2 trillion, with consumers taking most of the hit, S&P says

Core Insights - President Trump's tariffs are projected to cost global businesses over $1.2 trillion by 2025, primarily impacting consumers [1] - The analysis indicates that the additional expenses for companies may be conservative, based on data from approximately 15,000 sell-side analysts across 9,000 companies [1] Group 1: Tariff Impact - Tariffs and trade barriers are likened to taxes on supply chains, leading to a systemic transfer of wealth from corporate profits to workers, suppliers, governments, and infrastructure investors [2] - The U.S. administration's tariffs, including a 10% levy on all goods entering the U.S., have resulted in negotiations and additional duties on various items [2] Group 2: Cost Distribution - The S&P analysis reveals that only one-third of the tariff costs will be borne by companies, with the remaining two-thirds passed on to consumers [3] - The estimated $907 billion impact includes covered companies, while uncovered firms, private equity, and venture capital also share the burden [3] Group 3: Consumer Burden - With real output declining, consumers are experiencing higher prices for fewer goods, indicating that the two-thirds share of costs may be a conservative estimate of their true burden [4]