As Trump administration tariffs and the ongoing conflict with Iran drive up the cost of everything from oil to steel, one might expect major American corporations to push back forcefully. The assumption would be that these policies squeeze corporate profits just as they squeeze the wallets of ordinary Americans.

Yet corporate America has largely remained silent — and in some cases has quietly encouraged both the tariffs and the war. The reasons reveal a dynamic that is reshaping the American political economy.

One explanation is that defense contractors and suppliers are profiting from the war. While this is undoubtedly true for some companies, it does not account for the acquiescence of the vast majority of large U.S. corporations with no ties to the defense-industrial complex.

Another possibility is that companies fear retaliation from the administration. But if corporate leaders were genuinely concerned about the impact of tariffs and war on their bottom lines, they could deploy their lobbyists and campaign contributions to oppose these policies — the very tools designed for such influence.

The simplest explanation is that both the war and the tariffs are boosting corporate profits. Domestic U.S. producers are able to raise their prices to match the elevated cost of imports, while companies not directly affected by tariffs or oil prices are using the broader inflationary environment as justification to raise their own prices. The result has been a surge in corporate earnings and stock values — and a growing financial burden on American consumers.

This upward redistribution of income and wealth, from consumers to large corporations, is a central but underreported story of the current political economy. It also helps explain why the administration's war in Iran and its tariff policies have faced relatively little corporate opposition.

Oil Sector Windfalls

Brent crude is currently trading at approximately $90.05 per barrel. If the conflict continues, prices could rise further — particularly if oil inventories are depleted, or if the war spreads to involve Houthi militants blockading the Red Sea or other Gulf states.

Because oil prices are set globally, dwindling supplies push prices higher across the board, including for domestic U.S. producers, who are reaping substantial windfall profits.

With crude oil prices averaging $95 per barrel between March and June — up from roughly $66 before the war — ExxonMobil, Chevron, ConocoPhillips, and Occidental Petroleum collectively earned approximately $31 billion in the second quarter of this year, according to FactSet estimates. That figure represents a sharp increase from about $12 billion during the same period a year earlier.

These profits have helped lift Big Oil's stock prices, benefiting investors and executives whose compensation includes stock. Meanwhile, American consumers face gasoline prices exceeding $4 per gallon — a dollar more than before the administration launched its military campaign on February 28.

Steel Tariffs Boost Domestic Producers

The administration imposed steel tariffs of 50 percent in March and June 2025. These measures have driven up domestic steel prices, benefiting American steelmakers who have raised their prices to match the now-higher cost of imported steel.

Leading U.S. steel producers have reported significant year-over-year earnings growth. Nucor posted second-quarter 2026 profits of $1.16 billion, up from $603 million a year earlier. Steel Dynamics reported second-quarter income of $534.1 million, nearly double its net income from the same period last year. A third major producer, Cleveland-Cliffs, earned $97 million in the second quarter (before interest, taxes, depreciation, and amortization), recovering from a loss of $213 million in the prior-year period. The company anticipates doubling its earnings in the coming quarter.

American consumers ultimately bear these higher costs — in the prices of cars, appliances, and virtually all goods containing steel. The Producer Price Index for steel mill products, a widely used measure of input costs, now stands at its highest level since May 2023.

Broader Inflationary Effects

U.S.-based manufacturers that depend on oil and steel have passed those increased costs on to customers without significantly affecting their profit margins. Meanwhile, some corporations with no direct exposure to oil or steel have cited higher import costs as a rationale for raising their own prices.

The result is that the administration's war and tariff policies have become a win for corporate America: profit margins are up, stock market valuations are rising, and shareholders are benefiting. American consumers, however, are absorbing the costs. Wages have not kept pace with rising prices, and consumers have no choice but to pay more for energy, steel-dependent goods, and a wide range of other products.

As the inflationary effects of the war and tariffs spread throughout the economy, they are masking what amounts to an upward redistribution of wealth from consumers to large corporations.

Two of the primary drivers of declining affordability, according to critics, are the administration's military conflict and its tariff regime. Robert Reich, a professor of public policy at UC Berkeley and former U.S. Secretary of Labor, argues that consumers — who lack the lobbying infrastructure of major corporations — still have the ability to register their disapproval at the ballot box on November 3. His writings are available at