Connect with us

Politics

Tariffs paid by midsized US firms tripled last year, new study shows

Published

on

WASHINGTON (AP) — Tariffs paid by midsize U.S. businesses tripled over the course of past year, new research tied to one of America’s leading banks showed on Thursday — more evidence that President Donald Trump ‘s push to charge higher taxes on imports is causing economic disruption.

The additional taxes have meant that companies that employ a combined 48 million people in the U.S. — the kinds of businesses that Trump had promised to revive — have had to find ways to absorb the new expenseby passing it along to customers in the form of higher prices, employing fewer workers or accepting lower profits.

“That’s a big change in their cost of doing business,” said Chi Mac, business research director of the JPMorganChase Institute, which published the analysis Thursday. “We also see some indications that they may be shifting away from transacting with China and maybe toward some other regions in Asia.”

The research does not say how the additional costs are flowing through the economy, but it indicates that tariffs are being paid by U.S. companies. The study is part of a growing body of economic analyses that counter the administration’s claims that foreigners pay the tariffs.

The JPMorganChase Institute report used payments data to look at businesses that might lack the pricing power of large multinational companies to offset tariffs, but may be small enough to quickly change supply chains to minimize exposure to the tax increases. The companies tended to have revenues between $10 million and $1 billion with fewer than 500 employees, a category known as “middle market.”

AP AUDIO: Tariffs paid by midsize US companies tripled last year, a JPMorganChase Institute study shows

AP’s Lisa Dwyer reports on research showing Tariffs are hitting the bottom line.

The analysis suggests that the Trump administration’s goal of becoming less directly reliant on Chinese manufacturers has been occurring. Payments to China by these companies were 20% below their October 2024 levels, but it’s unclear whether that means China is simply routing its goods through other countries or if supply chains have moved.

The authors of the analysis emphasized in an interview that companies are still adjusting to the tariffs and said they plan to continue studying the issue.

White House spokesman Kush Desai called the analysis “pointless” and said it didn’t “change the fact that President Trump was right.” The study showed that U.S. companies are paying tariffs that the president had previously claimed would be paid by foreign entities.

Trump defended his tariffs during a trip to Georgia on Thursday while touring Coosa Steel, a company involved in steel processing and distribution. The president said he couldn’t believe the Supreme Court would soon decide on the legality of some of his tariffs, given his belief that the taxes were helping U.S. manufacturers.

“The tariffs are the greatest thing to happen to this country,” Trump said.

The president imposed a series of tariffs last year for the ostensible goal of reducing the U.S. trade imbalance with other countries, so that America was not longer importing more than it exports. But trade data published Thursday by the Census Bureau showed that the trade deficit climbed last year by $25.5 billion to $1.24 trillion. The president on Wednesday posted on social media that he expected there would be a trade surplus “during this year.”

The Trump administration has been adamant that the tariffs are a boon for the economy, businesses, and workers. Kevin Hassett, director of the White House National Economic Council, lashed out on Wednesday at research by the New York Federal Reserve showing that nearly 90% of the burden for Trump’s tariffs fell on U.S. companies and consumers.

“The paper is an embarrassment,” Hassett told CNBC. “It’s, I think, the worst paper I’ve ever seen in the history of the Federal Reserve system. The people associated with this paper should presumably be disciplined.”

Trump increased the average tariff rate to 13% from 2.6% last year, according to the New York Fed researchers. He declared that tariffs on some items such as steel, kitchen cabinets and bathroom vanities were in the national security interest of the country. He also declared an economic emergency to bypass Congress and impose a baseline tax on goods from much of the world in April 2025 at an event he called “Liberation Day.”

The high rates provoked a financial market panic, prompting Trump to walk back his rates and then engage in talks with multiple countries that led to a set of new trade frameworks. The Supreme Court is expected to rule soon on whether Trump surpassed his legal authority by declaring an economic emergency.

Trump was elected in 2024 on his promise to tame inflation, but his tariffs have contributed to voter frustration over affordability. While inflation has not spiked during Trump’s term thus far, hiring slowed sharply and a team of academic economists estimate that consumer prices were roughly 0.8 percentage points higher than they would otherwise be.

Read More

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Politics

Top German soccer team cancels trip to Minneapolis, citing Trump immigration crackdown

Published

on

Werder Bremen, a top German soccer team, is canceling its planned trip to Minnesota this summer, after violence and political chaos engulfed Minneapolis amid the Trump administration’s major immigration enforcement push in January.

“Playing in a city where there’s unrest and people have been shot, that does not fit with our values here at Werder Bremen,” Christoph Pieper, the club’s head of communications, said in a statement. “Furthermore, it was unclear for us which players could be able to enter the United States due to the stricter entry requirements.”

The administration sent roughly 3,000 federal immigration agents to Minneapolis beginning in December, in a deportation effort dubbed Operation Metro Surge. Agents killed two protesters, Renee Good and Alex Pretti, in separate incidents last month as demonstrations spread throughout the city.

And while White House border czar Tom Homan announced the White House was ending its surge in Minnesota last week, Werder Bremen’s cancellation is far from the only economic fallout of the surge. Minneapolis city leaders announced last Friday that the operation had resulted in a more than $200 million financial impact.

Werder Bremen, one of the founding members of the Bundesliga and a winner of four German championships, has a reputation as one of the most progressive clubs in Europe. The club left X for Bluesky in 2024 due to “hate speech, hatred towards minorities, right-wing extremist posts and conspiracy theories” that had “been allowed to spread on X at an incredible pace,” it said in a statement at the time.

“We as a club, we have clear values,“ Pieper said Friday. “Our club stands for an open, pluralistic and united society. We are committed to ensuring that all people — regardless of their origin, skin colour, religion, sexual orientation, gender identity, age or disability — are naturally included and have a firm place in our community.”

The global soccer community has largely been kind to President Donald Trump since his return to the White House last year. The U.S. — alongside Canada and Mexico — is playing host to the quadrennial FIFA World Cup this summer. FIFA President Gianni Infantino has worked to court Trump’s favor, presenting him with a new FIFA Peace Prize in December and pledging millions for the White House’s Board of Peace initiative this week.

Werder Bremen is in the midst of a difficult season in the Bundesliga, languishing in 16th place in the league table with just four wins in the first 22 games of this year’s campaign. But just last year, the team finished in the league’s top 10 — with a 51-point effort keyed by 10 goals from Danish striker Jens Stage.

Continue Reading

Politics

Bowser requests Trump’s help on Potomac sewage spill

Published

on

Washington, D.C., Mayor Muriel Bowser on Wednesday accepted President Donald Trump’s offer to help fix the massive sewage spill outside the city, making an unusual request for Trump to declare the area a disaster and pay for repairs.

Bowser’s request came days after Trump tried to blame the spill on her and other Democrats and said that if they want federal help “they have to call me and ask, politely.”

Bowser signed her letter “Respectfully” in asking for the Federal Emergency Management Agency to offset all “costs incurred” by the city and regional sewer authorities following the Jan. 19 collapse of a sewer line in Montgomery County, Maryland. FEMA usually pays 75 percent of disaster repairs unless damage is extreme.

Bowser’s office did not respond to questions Thursday morning about why she was making the request now. In addition to seeking assistance, the three-term mayor — who is not seeking reelection — declared a local public emergency and asked the federal government to support several other water quality and flood protection projects in the city.

No president has approved a disaster declaration for a sewage spill, according to an E&E News analysis of FEMA records dating to 1953.

President Barack Obama approved an emergency declaration in 2016 for water contamination in Flint, Michigan, that began in 2014. FEMA provides limited aid for emergencies.

But presidents have authority to approve disasters for a wide range of events. In his first term, Trump approved disaster requests for every state to cover their costs of handling the Covid-19 pandemic. FEMA has given states roughly $140 billion for pandemic costs.

Bowser’s letter contains no cost estimates — which governors routinely include in their multipage disaster requests — and acknowledges aid would help residents outside her jurisdiction, in Maryland and Virginia.

Federal law says that disaster requests “shall be made by the Governor of the affected State” — or by a government leader such as a tribal chief, territorial governor or the mayor of Washington, and that a disaster request must be based on a finding that a jurisdiction cannot handle an event by itself. Bowser’s letter to Trump makes no such claim.

Neither Govs. Wes Moore of Maryland nor Abigail Spanberger of Virginia, both Democrats, have requested disaster aid from Trump. DC Water, the sewer authority, operates the sewer line that extends from as far as Dulles International Airport to a treatment plant in the city and did not respond to a request for comment.

“Maryland will not be seeking an emergency declaration because the responsibility for the repair and subsequent clean up does not fall to Maryland,” said Rhylan Lake, a spokesperson for Moore, in an email. “Since Maryland owns neither the infrastructure nor the land, Maryland does not anticipate needing supplemental resources at this time.”

Neither the White House nor FEMA responded to questions Thursday about whether they planned to grant D.C.’s assistance request.

Considered the largest raw sewage spill of its kind in U.S. history, the broken sewer line has released over 250 million gallons of raw sewage in the Potomac River. Environmentalists have been raising concerns for weeks about the spill, which could render the river unsafe for fishing and boating and undermine longstanding efforts to repair the Chesapeake Bay.

Local environmentalists said they would welcome federal funding to help with the cleanup, but that the priority should be to increase water quality monitoring and better notify the public about whether it’s safe to use the river.

“Going directly from zero comments on it to an emergency declaration after the fact seems like an unusual pathway,” said Betsy Nicholas, president of Potomac Riverkeeper Network. “We haven’t heard anything from the mayor or the mayor’s office on this for an entire month, which in and of itself was a little surprising and frustrating.”

Representatives for the utility have previously noted that they are working to accelerate a previously planned rehabilitation project to fix the sewer line. The line dates to the early 1960s.

Trump administration officials and local authorities have traded jabs in recent days over who is responsible for the spill, with the exact cause still undetermined.

Trump has primarily cast blame on Moore, with the White House describing the state as responsible for protecting water quality in the Potomac. But both Moore’s office and Bowser say that EPA is the primary regulator of DC Water.

A FEMA report Thursday morning says DC Water “is engaged with” EPA, FEMA, environmental agencies in the District, Maryland and Virginia, and the National Park Service, which owns the wooded parkland where the spill occurred next to the Potomac.

“Since the incident was first reported, DC Water has provided daily updates,” the FEMA report says.

Continue Reading

Politics

Ohio’s GOP governor sidesteps defending Kristi Noem

Published

on

Ohio Gov. Mike DeWine would not immediately endorse his fellow Buckeye, Vice President JD Vance, for his party’s 2028 presidential nomination and would not express confidence in Department of Homeland Security Secretary Kristi Noem amid reports that ICE could target Springfield.

Asked whether Vance should be the Republican party’s nominee, DeWine said Thursday that “he’s a favorite son of ours, and we’ll see how this whole thing plays out.”

At Blue Light News’s 2026 Governors Summit, the Ohio Republican said he has not heard further news following reports that Springfield could face an ICE crackdown on its large population of Haitian immigrants: “We’ve not been told at all if they’re going to come in.” And while DeWine said that state and local law enforcement would work to keep the peace if there was a crackdown, he warned that federal officers also need to perform professionally.

“Frankly, we expect ICE, if they come in, to follow good police protocols. If they do that, we’re going to be able to work our way through it,” he said.

DeWine sidestepped multiple opportunities to express confidence in Noem’s handling of DHS’ stepped up interior enforcement.

“Look, I think that what happened in Minnesota was a signal to a lot of people — they didn’t like what they saw,” DeWine said when asked about Noem.

DeWine did defend Les Wexner, the billionaire businessman and former client of Jeffrey Epstein whose name is blazoned across many central Ohio institutions, including the The Ohio State Wexner Medical Center. DeWine said Thursday that no evidence has emerged of his wrongdoing.

“Barring some new information of something that he has done illegal, I don’t see that as a problem,” said DeWine.

The governor, who has frequently tangled with Trump and Vance — including over their baseless attacks of Haitian immigrants eating pets in Springfield — would not say whether the president has been a “force for good” for the GOP and country.

Instead, he praised Trump’s actions on border enforcement.

“He has done something that has not been done before, and that is he has basically sealed the southern border,” DeWine said. “And you can talk to Democrats, talk to Republicans. I think everybody is happy about that.”

Continue Reading

Trending