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Global corporate spend on rise amid US tariffs

It’s expected to be $1.2 trn this year: S&P

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Global corporate spend on rise amid US tariffs
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22 Oct 2025 10:22 AM IST

New Delhi: US President Donald Trump’s tariffs are expected to be a major contributor to a $1.2 trillion rise in corporate expenses this year, a report said on Monday. President Trump’s tariffs combined with wage growth, increased energy costs, and rising capital expenditure for AI will lead to this trillion-dollar increase in corporate expenses in 2025, much of which is being passed on to consumers through hiked prices of products, according to the report by S&P Global. S&P revised its expenses forecast released in January based on the analysis of roughly 9,000 public companies. The recent estimate now projects total company expenses for the year will reach $53 trillion, the report said.

The ratings agency indicated that the shock has significantly reduced global corporate margin expectations, with sell-side analysts for major retailers including Walmart, Amazon and Costco Wholesalers projecting a total of $907 billion in lost profit.

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