US Firms’ Gross Margins Decline Amid Tariff Costs, Survey Says

July 9, 2025, 9:51 PM UTC

US companies face slumping profit margins and looming price hikes as the Trump administration’s tariffs deal financial blows, survey data suggests.

More than half of businesses in a new KPMG survey reported declining gross margins as a direct result of the import duties, according to the Big Four accounting firm’s tariff pulse survey published Wednesday. Sales in China are particularly hard-hit, with 83% of companies saying they’ve experienced reduced sales due to retaliatory tariffs.

“Businesses are navigating a trade environment that’s no longer defined by short-term volatility but by sustained disruption,” Joe Lackner, advisory partner in industrial manufacturing ...

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