JPMorgan Chase Institute Finds Tripled Tariff Costs for 48M-Worker Mid-Market Firms
Tariffs paid by US mid-market firms with $10M–$1B revenues and fewer than 500 workers tripled last year, imposing higher costs on companies employing 48 million people. Payments to China fell 20% versus October 2024 as firms adjust sourcing to offset new import taxes.
1. Tariff Increase Findings
The JPMorgan Chase Institute research shows that tariffs paid by US mid-market firms with revenues between $10 million and $1 billion and under 500 employees tripled over the past year, marking a significant rise in import costs for businesses employing 48 million Americans.
2. Financial Strain on Mid-Market Businesses
These added taxes have forced companies to absorb expenses by raising prices, reducing workforce growth or accepting slimmer profit margins, highlighting a substantial change in their cost structures and competitive dynamics.
3. Supply Chain Adjustments
Data reveal payments to China dropped 20% from October 2024 levels, suggesting firms are rerouting sourcing to other Asian regions or intermediaries to mitigate tariff burdens, though the precise nature of these shifts remains under review.
4. Ongoing Analysis and Policy Debate
The institute plans continued studies on tariff impacts as government officials, including economic council leaders, dispute findings over who ultimately bears import tax burdens, fueling debate on trade policy effects.