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Tariff costs to companies this year to hit $1.2 trillion, with consumers taking most of the hit, S&P says

1. Trump's tariffs may cost global businesses $1.2 trillion in 2025. 2. Consumers are expected to bear most tariff costs, impacting spending habits. 3. Profit margins are projected to contract, affecting corporate earnings. 4. Companies diversify supply chains, possibly leading to long-term changes in trade dynamics. 5. Future tariff strategies will significantly influence S&P 500 performance.

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FAQ

Why Bearish?

A projected $1.2 trillion cost may shrink company margins and consumer demand, historically linked to stock downturns.

How important is it?

The tariffs impact large businesses and consumer spending, which directly correlate with S&P 500 performance.

Why Short Term?

Immediate tariff effects may lead to price increases, impacting Q1 earnings before any long-term adjustments.

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