The report indicates that the impact of tariffs is not limited to international trade but has directly affected the costs, employment, and profits of American companies.
US President Donald Trump
US Tariffs: The impact of the tariffs imposed by US President Donald Trump earlier this year is now becoming clear. While these tariffs were intended to boost American industries, a new report suggests the burden has fallen directly on American companies and consumers. According to a research report released Thursday by the JPMorgan Chase Institute, tariff payments by US businesses have nearly tripled compared to last year.
Tariffs have a major impact on the US.
Citing this study, the Associated Press (AP) reported that tariff policies have had a profound impact on the economy. According to the report, approximately 48 million people in the US are employed by private companies. A large number of these businesses are grappling with rising costs and are repeatedly citing tariff policies.
Companies have had to raise prices, cut new hiring, and pressure on profits has increased. According to the institute's business research director, Shea Mak, there has been a significant shift in business cost structures. Transactions with China, in particular, have declined, and many companies may now turn to other Asian countries.
Decreased dependence on China
The data indicate that dependence on Chinese products is decreasing. Payments made by relevant companies to China decreased by approximately 20% compared to October 2024. However, it is unclear whether supply chains have actually shifted to other countries or whether goods are being rerouted from China to the US. The White House's response: The White House has disagreed with these findings.
White House Press Secretary Kush Desai dismissed the report as irrational, saying it doesn't change the fact that President Trump's policies are in the national interest. The report indicates that the impact of tariffs is not limited to international trade, but has directly impacted the costs, employment, and profits of American companies. While the administration is justifying this as a policy matter, the data shows that significant changes are underway in the trade landscape.
