Tariffs paid by midsize US businesses have tripled over the past year, according to new research tied to JPMorgan Chase, providing further evidence that President Trump’s push for higher taxes on imports is causing economic disruption. These additional taxes have impacted companies employing a combined 48 million people in the US, forcing them to absorb the new expense through higher prices for consumers, reduced employment, or lower profits.
Chi Mac, business research director of the JPMorgan Chase Institute, which published the analysis, noted the significant change in these companies’ cost of doing business. The JPMorgan Chase Institute is a global think tank dedicated to delivering data-rich analyses and expert insights for the public good. JPMorgan Chase & Co. is a leading global financial services firm with assets of $4.0 trillion and operations worldwide.
The research indicates that US companies are indeed paying the tariffs, countering the administration’s claims that foreigners bear the burden. The report used payments data to examine businesses that may lack the pricing power of large multinational corporations to offset tariffs, yet are agile enough to quickly modify supply chains to minimise exposure to tax increases. The study also suggests that some companies may be shifting away from transacting with China, potentially towards other regions in Asia.
These companies generally have revenues between $US10 million ($14 million) and $US1 billion with fewer than 500 employees, a category known as the “middle market”. The research does not specify how the additional costs are flowing through the broader economy but highlights the direct financial impact on these businesses.
