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Trump's Tariffs to Cost Global Businesses $1.2 Trillion

10/17/2025

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Summary

Story summary

S&P Global projects that tariffs enacted by President Donald Trump will cost global businesses $1.2 trillion in 2025, with about two-thirds borne by consumers.
The analysis, drawing on insights from 15,000 analysts, finds that only one-third of the costs will be absorbed by companies.
Tariffs are described as hidden taxes that raise logistics costs and divert profits to governments and create inflationary risks.

History

Historical Context

The Smoot-Hawley Tariff Act, enacted on June 17, 1930, raised tariffs on over 20,000 imported goods, aiming to protect American industries during the Great Depression. This protectionist measure led to retaliatory tariffs from other nations, causing international trade to plummet by 66%. The act's consequences highlight the potential for similar economic strains today, as current tariffs are projected to cost $1.2 trillion.

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Story summary

S&P Global projects that tariffs enacted by President Donald Trump will cost global businesses $1.2 trillion in 2025, with about two-thirds borne by consumers.
The analysis, drawing on insights from 15,000 analysts, finds that only one-third of the costs will be absorbed by companies.
Tariffs are described as hidden taxes that raise logistics costs and divert profits to governments and create inflationary risks.

1 / 2