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Midsize Firms Keep Paying High Tariffs Amid Ongoing Pressure

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JPM
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Midsize US firms have been adjusting to ongoing tariff pressure since early 2025. According to a recent report by JPMorganChase, these firms' tariff payments remain twice their pre-2025 levels.

In the period from October 2025 to mid-2026, tariff payments decreased somewhat but continued to be high. International payments by midsize firms grew more slowly than domestic ones during this time, with a persistent gap of 6-12 percentage points.

The report found that tariffs have increased for every industry and are now above 2% of total inflows in several manufacturing sectors. The largest relative increases in tariff payments occurred in the Midwest and Southeast regions, despite major port areas having the highest absolute tariff burdens.

Firms facing higher tariff burdens may respond by changing their supplier networks, which could generate both risks and opportunities for regional economic development.

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