LONDON (IT BOLTWISE) – Tariffs imposed by President Donald Trump are putting enormous financial pressure on companies worldwide, ultimately hurting consumers. A report from S&P Global shows companies will lose at least $1.2 trillion more than expected this year due to changing trading conditions and rising costs.
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The tariffs imposed by President Donald Trump have created significant financial pressure on companies worldwide, which is ultimately passed on to consumers. A report from S&P Global shows that companies will lose at least $1.2 trillion more this year than originally expected. These losses are due to changing trading conditions and rising costs, including wage increases, energy prices and investments in AI infrastructure.
S&P estimates corporate spending will be $53 trillion this year, a revision from its Jan. 1 forecast. The analysis is based on predictions from over 15,000 analysts covering around 9,000 listed companies, representing 85% of the global stock market.
Global corporate margin expectations fell about 0.64%, representing a loss of $907 billion in profits. These losses come from a $600 billion increase in revenue forecasts and a $300 billion decline in profit expectations. Of the estimated $907 billion in losses, about two-thirds will be passed on to consumers through higher prices, while a third will be absorbed internally through lower profits.
S&P’s report also shows that real production is declining, meaning fewer goods are actually being produced by these companies. The analysis extends beyond the 9,000 publicly traded companies to also include increased projected spending of approximately $155 billion for uncovered public companies and $123 billion for private equity and venture capital-backed companies.
The debate over who bears the bulk of the price increases caused by tariffs continues. While some experts argue that the impact on inflation is moderate and is mainly borne by high-income households, others emphasize that low-income households in particular are suffering from the price increases.
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