Tariff payments for midsized US firms have tripled over the past year, according to a new analysis from the JPMorganChase Institute. The report reveals that these businesses have been disproportionately affected by the Trump-era tariffs, with the costs being felt domestically.
The JPMorganChase Institute analysis shows that the tariffs imposed by the US government have had a significant impact on midsized companies, which are defined as those with annual revenues between $10 million and $1 billion. These firms have seen their tariff payments increase substantially, with the average payment rising from $114,000 in 2017 to $384,000 in 2020. The study suggests that the tariffs have resulted in higher costs for these businesses, which may be passed on to consumers or affect their bottom line.
The JPMorganChase Institute study used data from over 1,000 midsized US firms to conduct its analysis. The report highlights the fact that these businesses are more likely to be affected by tariffs due to their limited resources and lack of diversification. In contrast, larger companies like $AAPL and $TSLA may have more flexibility to absorb the costs of tariffs or pass them on to consumers. The study also notes that the tariffs have had a disproportionate impact on certain industries, such as manufacturing and agriculture.
The following table summarizes the key findings from the JPMorganChase Institute study:
| Year | Average Tariff Payment |
|---|---|
| 2017 | $114,000 |
| 2018 | $204,000 |
| 2019 | $294,000 |
| 2020 | $384,000 |
Looking ahead, the impact of the tariffs on midsized US firms is likely to be a key issue in the upcoming trade negotiations between the US and its trading partners. The JPMorganChase Institute study suggests that policymakers should consider the effects of tariffs on these businesses when making decisions about trade policy. As the US economy continues to evolve, it will be important to monitor the impact of tariffs on midsized firms and the broader economy.
⚡ Why it matters: The tripling of tariff payments for midsized US firms has significant implications for the US economy and trade policy. The increased costs associated with tariffs may affect the competitiveness of these businesses and the overall health of the economy.
📊 By the numbers:
Average tariff payment for midsized US firms in 2020: $384,000
Increase in average tariff payment from 2017 to 2020: 237%
Number of midsized US firms included in the JPMorganChase Institute study: over 1,000
🔗 Source: Associated Press News*
