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In case your latest trip to the mall wasn’t confirmation enough: Many, many companies are raising prices because of Trump’s tariffs.
Just how many, you ask? Well, 66% of US companies “have already passed through up to 50% of tariff costs” to customers, per KPMG’s latest Tariff Pulse Survey, which polled 300 US-based C-suite and business leaders of companies with annual revenue exceeding $1 billion. Nearly a quarter of that group passed along more than half of tariff costs, a steep rise from just 13% of companies steering the cost to customers in July, according to KPMG.
And don’t expect things to slow down anytime soon. In the next six months, 42% of respondents anticipated price increases of up to 5%, while 29% expected increases between 6% and 15%.
“Despite efforts to optimize supply chains, we continue to see profits decline due to increases in tariffs,” Brian Higgins, KPMG’s US sector leader for industrial manufacturing, said in a statement. “Uncertainty is not going away. Instead of taking the wait-and-see approach, US businesses need to invest now in driving meaningful productivity gains as well as to help build resilience.”
But changing the status quo is easier said than done. The survey found that while 63% of US companies are in “early-stage discussions or active evaluations” about reshoring their operations to the US, only 10% are taking action.
Uncertainty isn’t helping. Only 23% of businesses reported feeling confident in tariff stability, while 44% reported feeling doubt or moderate confidence. In light of that uncertainty, almost 40% of US businesses have paused hiring efforts, while a third of companies have reduced their workforce from 1% to 5% and 15% have reduced their US workforce by 6%–10%.