Midsize Companies Feel the Squeeze as Import Taxes Triple

A new report released today shows that midsize American businesses have seen the taxes they pay on imported goods triple over the last year. These companies, which employ nearly 50 million people across the country, are struggling to keep up with the rising costs. Many are being forced to make tough choices, like raising prices for their customers or putting a freeze on hiring new staff to balance the books.

Researchers found that these businesses are starting to move their supply chains away from China to other parts of Asia to avoid the heavy fees. However, it’s not yet clear if they are finding permanent new partners or just temporary workarounds. While the government argues these policies will eventually help American workers, the current data suggests the burden is falling squarely on the shoulders of US-based companies and the people who shop with them.

The impact is especially hard on "middle market" firms—those making between $10 million and $1 billion. Unlike massive global corporations, these businesses don't always have the leverage to negotiate better deals or easily absorb multimillion-dollar tax hikes. As a result, many are seeing their profit margins shrink just as they were trying to grow.

Despite these challenges, the administration remains confident that the strategy will lead to a more balanced trade system. Officials pointed out that the goal is to make the US less dependent on foreign manufacturing in the long run. For now, though, business owners are watching their expenses closely and waiting to see if the promised "rebound" for American factories actually kicks in this year.