President Trump’s tariffs are causing a trillion-dollar corporate squeeze, with most costs passed on to consumers. S&P Global reports companies will lose $1.2 trillion more than expected this year due to changing trade dynamics, wage increases, and energy prices. Retail giants like Walmart and Amazon are passing $592 billion in higher prices on to consumers.

Analysis shows a $907 billion profit loss for companies covered by sell-side analysts, with $315 billion absorbed internally. Real output is decreasing, and expenses are rising for both public and private firms. Debate persists over who bears the brunt of tariff-driven price hikes, with differing opinions from experts and analysts.

Experts warn lower-income consumers feel the brunt of tariff impacts, with luxury goods maintaining prices. Economists note lower earners spend more on tariffed goods like furniture and electronics. The White House claims consumer strain from tariffs will be temporary, as companies shift supply chains and onshore production.

S&P predicts corporate profit loss may exceed $1.2 trillion, as the estimate may be conservative. Firms without analyst coverage could face even higher losses. The impact of tariffs continues to be felt across various sectors, with ongoing debates over the economic implications.

Read more at Yahoo Finance: S&P analysis of 9,000 companies worldwide finds the real cost of tariffs and other corporate costs: $1.2 trillion