Trump’s New Tariff Plan May Cost Employers $82.3 Billion
A fresh analysis by the JPMorganChase Institute warns that Donald Trump’s proposed tariffs could cost U.S. businesses as much as $82.3 billion. This impact is expected to hit mid-sized companies—those with annual revenues between $10 million and $1 billion—the hardest. These firms together employ about one-third of U.S. workers.
Why This Matters
Many of these companies depend heavily on imports from countries such as China, India, and Thailand. The new tariffs could lead businesses to:
- Increase prices for consumers
- Cut back on hiring or lay off workers
- Reduce their profit margins
Who’s Really Paying?
While Trump has said foreign manufacturers would bear the cost, data shows that U.S. companies are absorbing most of it. Large firms like Amazon and Walmart have tried to protect themselves by stockpiling inventory ahead of the hikes.
What’s Next?
- The July 9 deadline looms for finalizing the tariffs.
- The U.S. has made deals with Vietnam and is still in talks with India.
- Experts warn that up to 60% of the cost could hit consumers, possibly raising inflation.
Other Effects
Some manufacturers may benefit as local production becomes more competitive. However, retailers and companies with tight margins could struggle. The White House hopes the extra revenue from tariffs will help pay for a new tax cut package.