Chart of the Week
Jul 11, 2025
2 MIN READ

Mid-market may offer insulation from tariff-related volatility

Amid tariff shifts, the U.S. middle market offers exposure to domestically focused companies with more localized revenues and supply chains.
Christopher Bole
Vice President, Financial Writer

Domestic revenue share for U.S. firms

This column chart compares the share of revenues sourced domestically across lower/core middle market companies, upper middle market companies, those in the S&P 500 and the Nasdaq 100. Middle market companies tend to derive a meaningful percentage of revenues from domestic sources, which may offer greater insulation from the effects of tariff policy.
Source: Bloomberg, National Center for the Middle Market as of December 31, 2024.
  • Markets spent the week digesting shifting trade policy, including a proposed 50% tariff on Brazil, higher copper tariffs and an extension of reciprocal tariffs until Aug 1.
  • Ongoing trade uncertainty highlights the vulnerabilities of large-cap multinationals, which tend to have greater exposure to global supply chains and foreign revenue.
  • In contrast, middle market companies generate a significantly higher share of revenue domestically: roughly 85% for lower/core middle market and 75% for upper middle market firms. That’s compared to just 60% for the S&P 500 and 52% for the Nasdaq 100.
  • This domestic focus may offer insulation from tariff-related volatility, positioning middle market companies as a more stable source of return in uncertain macro environments.
contributing authors
Christopher Bole
Vice President, Financial Writer
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