{"id":371,"date":"2025-07-02T13:10:08","date_gmt":"2025-07-02T13:10:08","guid":{"rendered":"https:\/\/zoltrunakiver.com\/?p=371"},"modified":"2025-07-21T14:24:57","modified_gmt":"2025-07-21T14:24:57","slug":"analysis-shows-trumps-tariffs-would-cost-us-employers-82-3-billion","status":"publish","type":"post","link":"https:\/\/zoltrunakiver.com\/index.php\/2025\/07\/02\/analysis-shows-trumps-tariffs-would-cost-us-employers-82-3-billion\/","title":{"rendered":"Analysis shows Trump\u2019s tariffs would cost US employers $82.3 billion"},"content":{"rendered":"

By JOSH BOAK, Associated Press<\/strong><\/p>\n

WASHINGTON (AP) \u2014 An analysis finds a critical group of U.S. employers would face a direct cost of $82.3 billion from President Donald Trump\u2019s current\u00a0tariff plans<\/a>, a sum that could potentially be managed through price hikes, layoffs, hiring freezes or lower profit margins.<\/p>\n

The analysis by the JPMorganChase Institute is among the first to measure the direct costs created by the import taxes on businesses with $10 million to $1 billion in annual revenue, a category including roughly a third of private-sector U.S. workers. These companies are more dependent than other businesses on imports from China, India and Thailand \u2014 and the retail and wholesale sectors would be especially vulnerable to the import taxes being levied by\u00a0the Republican president<\/a>.<\/p>\n

The findings show clear trade-offs from Trump\u2019s import taxes, contradicting\u00a0his claims<\/a>\u00a0foreign manufacturers would absorb the costs of the tariffs instead of U.S. companies that rely on imports. While the tariffs launched under Trump have yet to\u00a0boost overall inflation<\/a>, large companies such as Amazon, Costco, Walmart and Williams-Sonoma delayed the potential reckoning by building up their inventories before the taxes could be imposed.<\/p>\n

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FILE \u2013 A shopping cart filled with groceries sits in an aisle at an Asian grocery store in Rowland Heights, Calif., Thursday, April 3, 2025. (AP Photo\/Jae C. Hong, File)<\/figcaption><\/figure>\n

The analysis comes just ahead of\u00a0the July 9 deadline<\/a>\u00a0by Trump to formally set the tariff rates on goods from dozens of countries. Trump imposed that deadline after the financial markets panicked in response to his April tariff announcements, prompting him to schedule\u00a0a 90-day negotiating period<\/a>\u00a0when most imports faced a 10% baseline tariff. China, Mexico and Canada face higher rates, and there are separate\u00a050% tariffs on steel and aluminum<\/a>.<\/p>\n

Had the initial April 2 tariffs stayed in place, the companies in the JPMorganChase Institute analysis would\u2019ve faced additional direct costs of $187.6 billion. Under the current rates, the $82.3 billion would be equivalent on average to $2,080 per employee, or 3.1% of the average annual payroll. Those averages include firms that don\u2019t import goods and those that do.<\/p>\n

Asked Tuesday how trade talks are faring, Trump said simply: \u201cEverything\u2019s going well.\u201d<\/p>\n

The president has indicated he\u2019ll set tariff rates given the logistical challenge of negotiating with so many nations. As the 90-day period comes to a close, only the United Kingdom has signed\u00a0a trade framework<\/a>\u00a0with the Trump administration. Trump announced Wednesday he\u2019d reached a deal with Vietnam, while India has signaled it\u2019s close to agreeing on a trade framework.<\/p>\n

Trump said on his social media site Vietnam will pay the U.S. a 20% tariff on all goods sent \u201cinto our Territory\u201d and a 40% tariff on any transshipping, which usually means exports that come from China but pass through Vietnam to dodge tariffs on Chinese goods.<\/p>\n

In return, Vietnam will grant the U.S. \u201cTOTAL ACCESS\u201d to its market for trade, Trump said, meaning \u201cwe will be able to sell our product into Vietnam at ZERO Tariff.\u201d He added he thinks SUVs \u201cwill be a wonderful addition to the various product lines within Vietnam.\u201d<\/p>\n

There\u2019s a growing body of evidence suggesting more inflation could surface. The investment bank Goldman Sachs said in a report it expects companies to pass 60% of their tariff costs onto consumers. The Atlanta Federal Reserve has used its survey of businesses\u2019 inflation expectations to say companies could on average pass along roughly half their costs from a 10% tariff or a 25% tariff without reducing consumer demand.<\/p>\n