Companies Face $1.2 Trillion Cost Shock in 2025
October 24, 2025—Businesses are facing a $1.2 trillion tariff-related expense burden this year, and companies are likely to pass on two-thirds of some costs to consumers, according to S&P Global.
S&P Global evaluated estimates from 15,000 sell-side analysts for its report, “Margin Math: A $1.2 trillion expense propagates through supply chains in 2025.”
Overall, across the global equity market, which represents roughly 9,000 public companies worth $130 trillion, companies are expected to face a $1.2 trillion cost shock due to higher tariffs. At the company level, firms face an expense shock of $907 billion. Firms are likely to pass on part of the burden—an estimated $592 billion—to consumers. Meanwhile, companies are likely to absorb the remaining third by reducing profits.
The S&P Global report examines how the cost shock is likely to vary across sectors, regions, and company size.
