Analysis by the JPMorganChase Institute reveals that a significant group of US employers would face direct costs of $82.3 billion due to President Donald Trump’s current tariff plans. This sum could be managed through price hikes, layoffs, hiring freezes, or lower profit margins.
The tariffs primarily affect businesses with $10 million to $1 billion in annual revenue, which are heavily reliant on imports from China, India, and Thailand. The retail and wholesale sectors would be particularly vulnerable to the import taxes.
Contrary to Trump’s claims that foreign manufacturers would absorb the costs of the tariffs, the analysis shows clear trade-offs. While large companies like Amazon and Walmart have delayed implementing price hikes by building up their inventories before the taxes could be imposed, smaller businesses may struggle to absorb the increased costs.
The findings suggest that some domestic manufacturers might strengthen their roles as suppliers of goods, but wholesalers and retailers already operate on thin profit margins, which would require them to pass the tariffs’ costs to customers.
Treasury Secretary Scott Bessent expressed confidence in the concessions made during trade talks, saying they have impressed career officials. However, the outlook for tariffs remains uncertain, with Trump threatening additional tariffs on Japan unless it buys more rice from the US.
The JPMorganChase Institute analysis serves as a warning that Trump’s tariff plans could have significant consequences for US employers, and policymakers must carefully consider these implications as they navigate trade negotiations.
Source: https://apnews.com/article/trump-tariffs-analysis-employers-consumers-prices-6fef729ff39ce24fcd46bbb60134b032