Tariffs paid by midsize US companies tripled over the past year, according to new research from the JPMorganChase Institute. The findings add new data to the debate over trade policy under President Donald Trump.
The study examined “middle market” businesses. These companies generate between $10 million and $1 billion in annual revenue and employ fewer than 500 workers. Together, they employ about 48 million people across the United States.
Tariffs are taxes placed on imported goods. When companies bring products or materials into the country, they must pay these taxes at the border. The report shows that midsize businesses are paying significantly more than they did a year ago.
Using payment data, researchers found that tariff payments for these firms tripled over the course of the year. This represents a major increase in operating costs. The study indicates that US companies are paying these tariffs directly, rather than foreign governments covering the expense.
The research focused on businesses that may not have the same flexibility as large multinational corporations. Bigger firms often have stronger pricing power or more options to shift supply chains quickly. Midsize companies may face greater pressure when import costs rise suddenly.
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Trade Shifts and Rising Deficit
The analysis also found signs of changing trade patterns. Payments to China from these companies were 20% below their October 2024 levels. This suggests some businesses may be reducing direct transactions with Chinese suppliers. However, it remains unclear whether goods are being rerouted through other countries or whether supply chains have fully moved.
The tariffs were introduced with the goal of reducing the US trade imbalance and encouraging domestic manufacturing. Over the past year, the average tariff rate increased from 2.6% to 13%, according to researchers at the Federal Reserve Bank of New York. Some items, including steel, kitchen cabinets, and bathroom vanities, were given higher tariffs under national security claims.
In April 2025, a broad baseline tariff on goods from much of the world was announced during an event called “Liberation Day” after an economic emergency declaration. The higher rates led to financial market volatility. Some tariff levels were later adjusted, and talks were held with multiple countries that resulted in new trade frameworks.
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Meanwhile, data released by the United States Census Bureau showed the US trade deficit rose by $25.5 billion last year to $1.24 trillion. This means the country imported far more than it exported during the period.
Impact on Prices, Jobs, and Legal Review
Separate research from the Federal Reserve Bank of New York estimated that nearly 90% of the tariff burden fell on US companies and consumers. Academic economists estimated that consumer prices were roughly 0.8 percentage points higher than they would have been without the tariffs.
For midsize businesses, higher tariffs mean higher costs. Companies generally respond by raising prices, cutting hiring or jobs, or accepting lower profits. The JPMorganChase Institute report did not specify which option companies are choosing most often, but it confirmed that tariff payments have become a larger expense.
Hiring slowed sharply during this period, even though inflation did not spike dramatically. Affordability concerns remained for many households. The administration continued to argue that tariffs benefit American businesses and workers.
The Supreme Court of the United States is expected to rule soon on whether the economic emergency declaration used to impose certain tariffs exceeded legal authority.
The data shows that tariffs paid by midsize US companies rose sharply, trade flows shifted, and the overall trade deficit increased during the year.