Overview
- S&P Global estimates at least $1.2 trillion in extra 2025 expenses versus January projections, with total company outlays now seen at $53 trillion and real output declining.
- Roughly two-thirds of an estimated $907 billion profit hit, or about $592 billion, is being passed through to consumers via higher prices, according to the report.
- Corporate disclosures heading into third-quarter earnings flag more than $35 billion in tariff costs, though several firms have trimmed worst-case estimates after lower-rate deals with the EU and Japan.
- ECB President Christine Lagarde cautioned that U.S. households have yet to feel the full effect as companies temporarily absorb costs, while a Goldman Sachs analysis suggests consumers could eventually bear about 55% of tariff burdens.
- Exposure is concentrated in goods-heavy sectors, with automakers and retailers reporting sizable hits—including Toyota’s $9.5 billion estimate and Nike’s increase to $1.5 billion—as companies pursue selective price hikes, inventory frontloading and tech-driven planning to blunt the shock.