Politics

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

Published

2 months ago

February 20, 2026

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.

Politics

2028 Democrats say anyone can win. Voters aren’t so sure.

Published

20 hours ago

April 11, 2026

Blue Light Newsroom

NEW YORK — A fear of losing again is already shaping how Democrats think about 2028.

Chants of “run again!” reverberated through the packed room as Kamala Harris spoke Friday at the National Action Network convention, a gathering of Black voters, lawmakers and power brokers that saw drop-ins from a steady stream of potential presidential candidates. But several Black attendees openly questioned whether anyone other than a straight, white man can win the White House.

“The Democratic Party, they’re going to have to consider … who can win? Who can win, Black, white, who can win?” the Rev. Kim Williams, 63, a New Yorker and registered independent said in an interview.

“I don’t think [the country is] ready for another different type of person,” said Annette Wilcox, a 69-year old New Yorker.

It’s an open question the party is grappling with in the wake of Harris’ decisive 2024 loss to President Donald Trump. Conversations with a dozen people on the sidelines of the Rev. Al Sharpton’s gathering found some lingering concerns that America remains too bigoted — and that as a result, the desire to diversify the highest reaches of government is in tension with the desire to win.

In interviews, several of the prospective 2028 Democrats themselves argued that anyone can win. They poured into the midtown Manhattan ballroom over the week to build their relationships with Black voters for what became a barely-hidden shadow primary.

Sen. Ruben Gallego, a first-term Democrat who won statewide in Arizona despite Harris losing the state, told Blue Light News on the sidelines of the convention that the party shouldn’t let fear narrow who ultimately runs.

“If you got stuck into this idea of what an ideal character is … you could potentially miss some really great talent,” said Gallego, who leaned intohis identity as a Latino veteran in his 2024 campaign.

Maryland Gov. Wes Moore, another possible 2028 candidate, said that he doesn’t “know many people back in 2022 who thought that an African American who had never held political office in his life was gonna be the next governor of Maryland.”

“People want to know, does your message meet a moment,” he added.

On stage with Sharpton on Friday, Harris seemed to agree. She made her most explicit overture at running again for the presidency, telling the audience she was “thinking about it” — to loud cheers and applause. Her appearance at the convention energized an otherwise largely staid event.

But even Harris, the first Black and South Asian woman to become vice president, has tacitly acknowledged the limitations of the country.

In her latest book, she divulged that former Transportation Secretary Pete Buttigieg — another 2028 contender who also made a pit-stop at NAN — was her top vice presidential pick in 2024. But she didn’t select him because she didn’t believe the country was ready for both a woman of color and a gay man in the White House.

A spokesperson for Harris declined to comment.

Some women, from former first lady Michelle Obama to various convention attendees disappointed by Harris’ 2024 loss, have said the U.S. isn’t ready for a female president.

“I believe the current climate of this country is not ready for a Black woman as president,” Aaliyah Payton, 30, a middle school teacher in the Bronx, said while waiting to see Harris speak on the third day of the convention in a line that spanned far outside the convention room.

“If Kamala Harris is running as a Democrat, and there is another white man also running as a Democrat, she would have a tough time winning,” said 60-year-old Donna Carr, who lives in New Jersey. “It’s a man’s world.”

“I’m not going to lie, it may be too soon,” said 27-year-old New Yorker Justina Peña when asked if Harris should run again.

The same handwringing roiled the 2020 Democratic presidential primary, and voters ultimately selected Joe Biden — a more moderate straight white man — to block Trump from winning a second consecutive term.

The debate within the Democratic Party over what kind of candidate is electable played out again most recently in Texas, where the Democratic Senate primary was defined by tensions over race and concerns over which candidate could unify enough Democrats, independents and disillusioned Republicans to flip the red state. Voters chose seminarian James Talarico, a white man, over political firebrand Jasmine Crockett, a Black woman, in the end.

“We saw it with the race with Crockett, and I saw a woman say she wanted to vote for Crockett, but she knew she could not win against [a] white male Republican,” said Williams, the 63-year-old reverend.

Now, those conversations are already emerging for 2028 before a single Democrat has officially announced a bid for the White House. The question over 2028 ambitions hovered over Moore, Gallego, Harris, Buttigieg, Illinois Gov. JB Pritzker, Pennsylvania Gov. Josh Shapiro and California Rep. Ro Khanna this week — and while nobody said they officially are, nobody ruled it out. Kentucky Gov. Andy Beshear and Arizona Sen. Mark Kelly are slated to speak on Saturday.

Buttigieg has dismissed concerns over his viability, including in a direct response to Harris’ revelation of why she didn’t choose him as a running mate in 2024.

“My experience in politics has been that the way that you earn trust with voters is based mostly on what they think you’re going to do for their lives, not on categories,” Buttigieg told POLITICO in a September interview.“Politics is about the results we can get for people and not about these other things.”

Some of the Black voters at the conference similarly expressed frustration with the idea that candidates’ identities should be a consideration in the looming 2028 primary.

“My concern — biggest concern — is when we get into a crisis like this in this country, people want to go to the ‘center,’ which usually is right of center in my view. A lot of people get kind of left out,” said Wilcox, the 69-year-old New York voter.

“In my experience, or history I’ve had with the Democratic Party, I feel like when that happens, Black people get tossed to the side.”