Tariffs

With the current tariff levels reduced to a 30% tariff on Chinese goods and a continued 10% universal tariff, we’ve updated our analysis to reflect what businesses are experiencing today, and what they should brace for next.

This issue's key takeaways: Tariffs could cause a 111% increase in private companies classified as high or very-high risk. High and very-high risk public companies could jump by 57%. The Financial Health Ratings of public and private companies could decline by as much 7.4 and 15.7 points, respectively

To help our clients understand the potential consequences of tariffs on their operations, RapidRatings conducted a series of stress tests based on our knowledge of global supply chain structures and country specific tariff rates. The following analysis assumed that companies increased their prices to cover half the cost of tariffs.

A trade war is here. Maybe. Probably. Certainly, the threat of tariffs is real and to some extent the tariffs themselves will be enacted. Then the counter tariffs, and so on. Corporations of all sizes are war rooming what these increased costs will mean. Despite rhetoric, the buyer always pays when tariffs are enacted, and in today’s market, not all buyers can afford what’s coming.