"The additional taxes have meant that companies that employ a combined 48 million people in the U.S. - the kinds of businesses that Trump had promised to revive - have had to find ways to absorb the new expense, by passing it along to customers in the form of higher prices, employing fewer workers or accepting lower profits."
""That's a big change in their cost of doing business," said Chi Mac, business research director of the JPMorganChase Institute, which published the analysis on Thursday. "We also see some indications that they may be shifting away from transacting with China and maybe toward some other regions in Asia.""
"The JPMorganChase Institute report used payments data to look at businesses that might lack the pricing power of large multinational companies to offset tariffs, but may be small enough to quickly change supply chains to minimize exposure to the tax increases. The companies tended to have revenues between $10 million and $1 billion with fewer than 500 employees, a category known as "middle market.""
Tariffs paid by midsized U.S. businesses tripled over the last year. Companies that employ a combined 48 million people have absorbed the additional taxes by raising prices, cutting staff, or accepting lower profits. Payments data show these middle-market firms are paying tariffs and reducing payments to China by about 20% from October 2024 levels, suggesting some rerouting or relocation of supply chains within Asia. Affected firms typically have $10 million to $1 billion in revenue and fewer than 500 employees. The data indicate that U.S. firms, not foreign suppliers, are bearing at least some tariff costs.
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