Trump Tariffs: Trump Tariffs Imposed a Heavier Burden on US Firms Than Switzerland's Entire GDP

The tariff policies implemented during Donald Trump's presidency have had a profound and far-reaching impact on the American economy, while a recent report by S&P Global has unveiled startling figures, indicating that these policies will inflict an additional financial burden of approximately $1. 2 trillion on US companies by 2025. This figure surpasses Switzerland's current GDP of around $1, while 1 trillion, underscoring the extensive reach of these policies.

Rising Costs and Declining Profits for Companies

The S&P Global report analyzed nearly 9,000 major public companies, finding that the estimated expenditure for these firms has soared to $53 trillion, Notably higher than previous forecasts, while beyond tariffs, factors such as wage increases, rising energy costs, and growing investments in sectors like AI have further escalated these expenses. Consequently, major companies like Walmart, Amazon, and Costco have witnessed a sharp decline in profits, collectively losing an estimated $907 billion.

Consumer Burden and Inflationary Pressure

A critical question arises: who bears this substantial burden, while according to the report, approximately two-thirds of the losses incurred by companies (around $592 billion) are being passed on to consumers in the form of increased prices. This means the general public is paying more for goods. The remaining one-third of the losses (approximately $315 billion) has been absorbed internally by companies, primarily through profit cuts. Tariffs have led to a decrease in actual production while prices. Have risen, forcing consumers to purchase fewer goods at higher costs. The total burden reaches $1. 2 trillion when additional costs incurred by unregistered companies and private equity firms (approximately $278 billion) are included.

Disproportionate Impact on Lower and Middle Classes

Debate continues regarding which segment of society has been most affected by the tariffs, while some experts, like former Federal Governor Christopher Waller, believe the impact primarily falls on the wealthy. However, economists such as Christopher Hodge argue that the lower and middle classes have borne the brunt of these policies. This is because these income groups spend a larger proportion of their earnings. On tariff-affected goods such as furniture, electronics, and clothing, whose prices have consequently increased.