Tariffs are already squeezing corporate margins, new survey finds

Data: KPMG; Chart: Axios VisualsSomeone has to pay the cost of tariffs — and a new survey out Tuesday finds many companies are already feeling the pain.Why it matters: Businesses trying to insulate customers from trade costs can only eat them for so long before raising prices, fueling the tariff-driven inflation many economists fear.Driving the news: Some 57% of companies were already experiencing a tariff-driven decline in gross margins as of May, per the KPMG Tariff Pulse Survey.Most of those hits were small — though a quarter of respondents said their margins had already fallen by 6% or more.The firm surveyed senior and C-Suite executives at 300 companies across industries, all with annual revenue of $1 billion or more.Zoom in: If higher prices haven't shown up for customers yet, the survey makes clear they're coming.77% of respondents said their companies are considering price increases of at least 5% in the next six months. What they're saying: "The survey underscores the Federal Reserve's fear that the bulk of the tariff-induced inflation has yet to hit," KPMG economist Diane Swonk said in a statement."The personal consumption expenditures index, the Fed's favored inflation measure, is forecast to peak above 4% in the second half of 2025; that is more than double the Fed's 2% target."The intrigue: Earnings season for public companies kicks off next week, and investors will be closely watching to see whether — and how badly — corporate profits are being squeezed. KPMG's data may serve as an ominous warning of what's to come.The bottom line: The government's already collecting nearly $30 billion a month in tariff revenue — and big companies seem to be paying the bill.

Comments

World news

As Trump pledges more weapons for Ukraine - how reliant is Kyiv on US military assistance?

Independent

Comments

Similar News

Investors shrug off Trump’s 200% tariff threat on pharma

Why is Trump threatening higher tariffs on ‘anti-American’ Brics nations?

Most UK companies would withstand sharply higher tariffs, BoE says

Copper market reels as Trump threatens 50% tariff

Copper prices in US hit record high after Trump announces 50% tariff

Wall Street bulls up even as tariffs roar back

Singapore’s Temasek sours on European companies amid US tariff threats

Why EU capitals are irate at German car swap scheme to swerve US tariffs

Trump delays tariffs as the rest of the world plays hardball

Trump deal to leave EU facing higher tariffs than UK

Trump ‘tariff wall’ takes shape around south-east Asia’s factories

Australian government ‘urgently seeking more detail’ after Trump flags 200% tariffs on foreign pharmaceuticals

Trump escalates trade war with plans for 50% copper tariff

Holiday season dodges price hikes with Trump's latest tariff pause

Trump threatens to escalate trade war amid confusion over new tariff rates

Rubio heads to Asia on trip overshadowed by tariffs, Middle East

Trump vows 50% tariff on copper, 200% on pharmaceuticals

Trump says he will hit copper with 50% tariffs

Trump promises there will be ‘no change’ to his August 1 tariffs start - despite previous delays in the timetable

Trump says August 1 tariff deadline is firm, hours after saying it wasn't

World news

As Trump pledges more weapons for Ukraine - how reliant is Kyiv on US military assistance?

Landmark ruling made over Russia’s responsibility for downing flight MH17

Pope Leo interrupts holiday to issue warning: ‘We live in a world that is burning’

Jeffrey Epstein’s brother has his say on Trump admin’s claims about sex offender’s suicide

Country singer Pat Green confirms ‘multiple family members’ died in Texas flooding

Doctor who treated Erin Patterson’s death cap mushroom victims reveals alarming details

BBC bosses ‘should have kept close eye on’ Gregg Wallace, say insiders

Home Office age errors put hundreds of asylum-seeking children ‘at risk of abuse’

Reeves’s pension plan blasted by Bank of England governor in ‘nuclear’ intervention

Christian Horner lost the battle of F1’s two biggest egos

Four things to know about jury-free trials before forming an opinion

I took a DNA test to discover my perfect sleep routine – I feel calmer and need less coffee

The Salt Path scandal proves you should never trust a memoir

Amazon accused of selling ‘slave-labour’ fashion on its website

Five radical moves Starmer can make to crack down on small boats

We’re Brits running our own businesses in Spain – navigating tax is a nightmare

South Korea sends 6 rescued North Koreans back across sea border

Turkish court orders ban on Elon Musk's AI chatbot Grok for offensive content

Jailed Kurdish militant leader urges PKK fighters to disarm before a symbolic peace ceremony

'He just wanted to play football': A family mourns a 15-year-old as Togo cracks down on protests

Spain's PM refuses to step down despite corruption inquiries

Al-Shabab group claims responsibility for explosion at a military training school in Somalia

An Indian fighter jet crashes and both pilots are killed

Europe’s top human rights court says Russia responsible for 2014 downing of Flight MH17

Hegseth did not get okay from Trump for Ukraine weapons pause, report says

Human rights court to make landmark ruling over Russia’s responsibility for Ukraine war

Highway workers rescued after getting into difficulty on busy motorway viaduct

Why is Trump threatening higher tariffs on ‘anti-American’ Brics nations?

PETA sues American Kennel Club over breeding standards for French bulldogs

Trump said he threatened to ‘bomb the s***’ out of Moscow if Putin ignored him and attacked Ukraine

Map reveals where wildfires are spreading across Europe ahead of summer holidays

Fears grow for 26-year-old German backpacker missing in rural Western Australia

Over 1,000 scouts evacuated from Polish summer camps ahead of rain warning

Trump threatened to bomb Moscow if Putin attacked Ukraine, new book claims

Turkish court bans Elon Musk’s Grok after chatbot insulted president Erdogan

Huge Marseille wildfire is pushed back but authorities warn ‘it is not finished’

Anger at closure of largest gender-affirming care center for kids in the US

Journalist arrested by ICE remains in custody despite being granted bond by judge

Three missing and house swept away as flash flooding hits New Mexico

Mystery after two Putin cronies are found dead on same day

I’m a SEND parent – this is why we’re turning to private school

Top housebuilding firms agree to pay £100m after anti-competitive behaviour probe

The degrees and apprenticeships to choose that will get you a job

Trump says he’s ‘not happy with Putin’ as US resumes weapons deliveries to Ukraine

New Mexico floods latest: ‘Father and two children’ still missing after being swept away in flash floods

Indian nurse convicted of killing business partner to be executed in Yemen on 16 July, says negotiator

Europe’s top human rights court is set to rule on cases against Russia over the conflict in Ukraine

Marseille airport suspends flights as raging wildfire reaches France's second-biggest city

Nato scrambles warplanes after Putin unleashes heaviest strikes of the war

The numbers that show Jamie Smith can be greatest keeper-batter of all time

‘Micro-efficiency’ gurus have it all wrong

Building the Band is a riot – but Liam Payne’s death looms large

Coup Leaders Are Rewriting Their Playbook

A wildfire that reached Marseille is pushed back but not extinguished

Ex-S. Korean leader appears in Seoul court for hearing on possible arrest warrant

Europe’s top human rights court is set to rule on cases against Russia over the conflict in Ukraine

Taiwan begins 10-day military drills to counter Chinese threats