S&P Analysis Reveals $1.2 Trillion Hidden Cost of Tariffs and Corporate Expenses

A new S&P Global analysis reveals that businesses worldwide are facing an unexpected $1.2 trillion in costs this year due to tariffs and corporate expenses - a "highly conservative" estimate based on forecasts covering 85% of the $130 trillion global equity market.

Published Thursday, the report shows companies are losing significantly more than anticipated at the start of 2025, as trade policies and tariff landscapes shifted dramatically. The analysis includes factors like wage increases and other operational costs, painting a clearer picture of financial pressures businesses now face.

"This represents a massive financial shockwave across global markets," says S&P analysts. "Companies that planned budgets early in the year must now recalibrate entire financial strategies to absorb these unexpected burdens."

The findings come amid shifting trade relationships worldwide, with companies struggling to pass these costs onto consumers while maintaining competitiveness. Many businesses are now reviewing supply chains and exploring alternative markets to mitigate tariff impacts.

For businesses navigating these challenges, the report underscores the importance of scenario planning and financial flexibility. As economic uncertainties continue, companies must balance immediate cost-cutting with long-term strategic investments to remain resilient.

For detailed methodology and company-specific analysis, see the original report on Fortune.