S&P Global: U.S. Tariffs to Add $1.2 Trillion in Business Costs by 2025

S&P Global has warned that the U.S. tariff policy will lead to an estimated $1.2 trillion increase in business costs by 2025, with much of the burden ultimately being passed on to consumers.According to TechFlow, S&P Global analysts said that the expanding scope of tariffs—particularly those targeting imports from China, Europe, and key manufacturing sectors—is significantly raising operational expenses for U.S. companies.Tariff Costs Likely to Hit ConsumersThe report noted that businesses are already struggling to absorb higher import and logistics costs, forcing many to raise prices across supply chains. “The cost pressures generated by tariffs are being transferred to end consumers through higher prices on goods and services,” S&P Global said.The sectors most affected include automotive, electronics, and industrial manufacturing, where heavy reliance on imported materials has made companies particularly vulnerable.Economic Impact and Inflation RisksAnalysts at S&P Global warned that persistent tariff costs could add to inflationary pressures and slow corporate earnings growth, offsetting some of the recent gains driven by stronger consumer spending and a resilient labor market.While the U.S. government has justified tariffs as a measure to protect domestic industries, the report emphasized that the macroeconomic cost could outweigh short-term benefits, especially as companies adjust supply chains amid weaker global demand.