Key Point: “More than 70% of U.S. small and mid-sized businesses say tariffs have already increased their operating costs … 72% of U.S. companies said tariffs have already increased their costs, and 77% expect those costs to rise further by the end of the year.” 

Axios: Exclusive: Businesses still expect growth, even as tariff costs mount

By Ben Berkowitz 

• More than 70% of U.S. small and mid-sized businesses say tariffs have already increased their operating costs — but almost all still expect to be able to grow internationally in the coming years, per a new HSBC survey shared exclusively with Axios.

• HSBC’s Trade Pulse survey gathered responses from more than 5,700 companies in 13 countries between April 30 and May 12, including about 1,000 U.S. businesses.

• 72% of U.S. companies said tariffs have already increased their costs, and 77% expect those costs to rise further by the end of the year.

• HSBC executives say two things are driving the pressure: companies that haven’t had to pay duties before are suddenly being subject to them; and competition is rising for suppliers in lower-cost environments.