Tariff payments by U.S. middle-market firms have declined from their October 2025 peak, but remain more than twice pre-2025 levels, according to a new JPMorganChase Institute study. The research, based on de-identified transaction data from midsize firms, finds that tariff costs increased across every industry examined and are putting significant pressure on manufacturers.

Overall, tariffs consumed 0.81% of firms’ total inflows in the year following the 2025 tariff increases, compared with 0.35% before 2025—a 2.32-fold increase. The burden is particularly pronounced in manufacturing: machinery manufacturers spent about 2.01% of inflows on tariffs, while electrical equipment, appliance and component manufacturers spent 4.0%. Transportation equipment manufacturers faced a 0.99% burden, up from 0.28% previously.

The study also finds that international payments by middle-market firms have grown more slowly than domestic payments since 2025, maintaining a gap of roughly 6–12 percentage points. However, international outflows have remained relatively stable despite substantial changes in tariff rates, suggesting many companies may be postponing major supply-chain decisions while they wait for greater clarity on trade policy.

For equipment finance, the findings are particularly relevant to manufacturers and companies in capital-intensive sectors. The study notes that tariffs on imported inputs can force businesses to absorb higher costs through higher prices or reduced margins, while uncertainty can delay decisions involving supplier relationships, investments and other long-term strategies.

*This article was written with assistance from artificial intelligence.