Companies are increasingly passing the cost of President Donald Trump’s tariffs on to consumers and plan to keep raising prices, a KPMG survey released Monday suggests, underscoring how consumers have shouldered the burden of Trump’s tariffs as the president promises to impose more—though it remains unclear how the Supreme Court striking down some tariffs as unlawful will impact companies’ plans.
Key Facts
34% of major companies are now passing the majority of their tariff-related costs on to consumers, according to KPMG’s survey of 300 C-Suite executives at companies earning more than $1 billion in revenue annually.
That’s up from 21% of companies that passed along the majority of their costs in September 2025, and 13% passing costs along in May 2025, shortly after Trump announced his sweeping tariff policy.
More than half of the business leaders surveyed—55%—said their companies will further increase prices by at least 15% in the next six months.
The survey was conducted between Feb. 9 and 24, however, which is largely before the Supreme Court struck down Trump’s sweeping tariff policy on Feb. 20, though the president has promised to reimpose tariffs under other laws.
While the ruling could lower companies’ tariff bills, many businesses appear to be hiking up prices even beyond the amount they’re paying on import fees, with 37% of leaders reporting raising prices on items that aren’t impacted by tariffs and 19% reporting raising prices beyond the cost of their tariffs.
Business leaders broadly reported their companies are making fewer sales amid the tariffs, with 82% of respondents reporting a decline in foreign sales and 61% reporting declining sales domestically.
Crucial Quote
“The burden of tariffs has now moved squarely onto the consumer,” Brian Higgins, US Sector Leader for Industrial Manufacturing at KPMG, said in a statement Monday. “While businesses absorbed the initial shock to their margins, the overwhelming majority are now reshaping their pricing models for a trade environment where cost pressures are the new constant.”
What We Don’t Know
How the tariffs will keep playing out. Trump imposed global tariffs of 10% in the wake of the Supreme Court’s ruling, though under federal law they can only stay in place for up to 150 days. The president can impose tariffs on specific industries or countries under other laws, and has promised to do so, but it remains to be seen what those will look like and how companies could respond. Trade experts previously told Forbes retail and consumer goods may be the hardest to reimpose tariffs on, as the large variety of goods being produced makes them harder to tariff. In a follow-up survey KPMG conducted after the Supreme Court’s ruling, 50% of respondents still reported low confidence in executing their company’s investment plans and strategy, highlighting how there’s still uncertainty around trade even with the president’s biggest set of tariffs struck down.
What About Tariff Refunds?
The Supreme Court’s ruling striking down Trump’s tariffs has paved the way for the government to refund importers for the amount they already paid in tariffs, given the court’s decision that the tariffs were never lawful to begin with. A 62% majority of business leaders surveyed after the court’s decision said they expected to receive refunds, though only 28% said they would actively pursue them. Of the 28% who were undecided about pursuing refunds and the 9% who said they would not pursue refunds, many expressed fears that the legal costs of pursuing refunds could ultimately outweigh the cost of the refunds themselves. The Trump administration has since said in court it will set up a system in which importers can apply for refunds, after a judge ruled the administration cannot force companies to individually pursue refunds in court. It remains unclear how any refunds could impact companies’ plans for price increases or if they’ll pass any of those refunds on to consumers, as consumers are increasingly filing class action lawsuits against companies asking to be reimbursed for the tariff-related price increases they paid.
Key Background
Trump imposed sweeping tariffs on nearly all countries in April 2025, though they did not take full effect until August. The president made the tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), the centerpiece of his economic policy, despite widespread concerns from economists that doing so would raise prices for consumers and harm the economy. Small businesses and Democratic state attorneys general successfully fought the tariffs in court, with two lower courts, and then the Supreme Court, all ruling Trump did not have authority under IEEPA to impose the tariffs. Trump has slammed the court’s ruling in the case, which he has described as “one of the most important ever,” and has vowed to continue imposing tariffs under other laws. Polling suggests the president’s tariffs are broadly unpopular with the American public, and a Harris Poll survey conducted after the Supreme Court’s ruling found even a 64% majority of Republicans believed the tariffs have raised prices.
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