Oct 2, 2025 - Business

Most businesses expect tariff price hikes, KPMG says

Ben Berkowitz

Illustration of a shipping container skewered on a rising arrow. — Illustration: Lindsey Bailey/Axios

Nearly half of big businesses raised prices in the last six months due to tariffs, and a large majority expect to do so in coming months, a new KPMG survey out Thursday finds.

Why it matters: Tariff-driven inflation once looked like it would be a shock to the economy. Instead, it has turned into a slow burn that has no signs of abating.

By the numbers: 44% of businesses have already increased prices due to tariffs, per the September survey of 300 executives at U.S. companies with more than $1 billion in annual revenue.

Over the next six months, 42% say they will raise prices as much as 5%.
Another 29% say they plan to raise prices somewhere from 6% to 15%.

State of play: Those price increases are helping with, but not eliminating, the margin compression companies face as their input costs rise.

Some 39% of businesses have already seen their gross margins decline.
About two-thirds of respondents say they have already seen sales be deferred or decline outright and hardly any say sales are rising.

What to watch: The Supreme Court is scheduled to hear a challenge to President Trump's tariff authority in early November.

A loss could disrupt the administration's trade regime, and then inject a whole new round of confusion into the pricing strategies at companies.

Add Axios on Google

Most businesses expect tariff price hikes, KPMG says

What to read next