Consumers are paying the costs for Trump's tariffs: New York Fed
Fox Business ^ | 6/18/2025 | Eric Revell
Posted on 06/18/2025 4:53:36 AM PDT by bert
The Federal Reserve Bank of New York recently released a survey that found businesses are passing some or all of the cost of higher tariffs onto consumers through higher prices.
The New York Fed conducted its survey of businesses in the New York and northern New Jersey region from May 2-9 and found most businesses passed on at least some of the higher tariffs to their customers through higher prices. It found that about 90% of manufacturers and roughly three-quarters of service firms import some goods, with the average share of imported inputs at around 30% for all firms.
Manufacturers estimated the average tariff rate they paid on their imports was about 35%, an increase of about 25 percentage points from six months ago; service firms reported an average tariff rate of 26%, up 17 points in the last six months. Most of those firms have raised prices on customers by passing through some or all of the cost of higher tariffs.
"About three-quarters of businesses facing tariff-induced cost increases in both the manufacturing and service sectors passed along at least some of these higher costs to their customers by raising prices," the New York Fed wrote.
"Almost a third of manufacturers and about 45% of service firms reported fully passing along all tariff-related cost increases, while 45% of manufacturers and a third of service firms said they passed along some but not all of the cost increase," the report said.
US ECONOMIC GROWTH FORECAST CUT SHARPLY DUE TO HIGHER TARIFFS
Firms that raised their prices due to tariffs did so relatively quickly in response to the tariff-related cost increases, as over half of both manufacturing and service firms in that category raised prices within a month, including many within a day or week. Another quarter said they either raised their prices or planned to do so within one to three months of the cost increases.
The New York Fed's survey concluded before the temporary reduction of President Donald Trump's tariffs on China from 145% to 30% and prior to court rulings that invalidated some of his tariff measures.
WHITE HOUSE DECRIES 'JUDICIAL OVERREACH' AFTER FEDERAL COURT REJECTS TRUMP TARIFFS
These shifts in trade policies have created uncertainty in terms of the future path of tariffs and the impact they have on businesses.
"Looking ahead, businesses expressed considerable uncertainty about the future path of tariffs. Indeed, in early May, about half of service firms expected tariffs to move higher in the next months and about a third expected tariffs to decline," the New York Fed wrote.
TOPICS: Business/Economy; News/Current Events
KEYWORDS: inflation; nevertrump; nevertrumper; nevertrumpers; nevertrumpertrolls; tariffs; taxation
Click here: to donate by Credit Card
Or here: to donate by PayPal
Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794
Thank you very much and God bless you.
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41 next last
President Trump is on the record as noting we are making money from the tariffs.
That means that the Trump tariff tax increases are as this article suggests being paid by down stream consumers. The importers are paying the duty and then raising prices accordingly
1 posted on 06/18/2025 4:53:36 AM PDT by bert
To: bert
Consumption taxes are a far more equitable tax than the income tax.
Let’s reduce the income tax and reduce government spending.
2 posted on 06/18/2025 4:57:51 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
To: bert
“Service firms/sectors” are mentioned in just about every sentence. What would be a “service” firm? Manufacturing/producing makes sense but “service?”
To: bert
These pinheads obstinately refuse to look at the bigger picture.
4 posted on 06/18/2025 5:02:13 AM PDT by 9YearLurker
To: bert
Used to be, merchants accepted charge cards as an incentive to draw in customers. Of course, there was a fee to the merchants for accepting the cards. Now, most businesses are up charging for CC use, or offering discounts for cash. I haven’t carried cash in years, but I guess I’ll be going back to it.
5 posted on 06/18/2025 5:04:19 AM PDT by bk1000 (Banned from Breitbart)
To: bert
6 posted on 06/18/2025 5:04:34 AM PDT by cp124 (Bring back the Constitution.)
To: ConservativeMind
all income taxes need to be totally and permanently eliminated.
7 posted on 06/18/2025 5:04:39 AM PDT by bankwalker (Feminists, like all Marxists, are ungrateful parasites.)
To: bert
The free traitors (of both parties) just won’t give it up.
Inflation is down, tariff revenue into the treasury is way up, american manufacturing has some protection to bring good jobs back
But the free traitors want you to think tariffs are the worst thing in the world!!!!!
How can anyone be such a POS that they want extra profits for the 1% at the expense of their countrymen?
It’s the exact reason why america has fallen apart in the last 50 years. No sense of brotherhood anymore. Open borders and diversity destroyed all national unity, and now america is just a marketplace to these sickos. Not a country with a culture, common heritiage, brotherhood, helping one another - just a friggin marketplace for the 1% to reap as much profit as they can by any means possible. Sick sick sick SOBs
8 posted on 06/18/2025 5:06:05 AM PDT by imabadboy99
To: bert
New York....whoahahahahahahahahahahahaha...ohhahahhhaaaahahaha
hahahahahaahahahahgeehahahahah.
9 posted on 06/18/2025 5:08:39 AM PDT by Mashood
To: bert
10 posted on 06/18/2025 5:11:15 AM PDT by FlingWingFlyer (Correction! America is a nation of LEGAL IMMIGRANTS! All of mine came here legally. No free stuff.)
To: cp124
“Anything from NY is BS.”
Nailed it.
11 posted on 06/18/2025 5:13:13 AM PDT by Da Coyote
To: bert
Consumers are paying the costs for Trump’s tariffs
*********
Consumers pay the cost for all things. There isn’t and
never was a giant paying machine getting its money from
some place in the universe to pay for all things.
12 posted on 06/18/2025 5:13:48 AM PDT by deport
To: bert
So, based on this, if 30% of every dollar of manufactured goods are getting a tariff one them…we should see 3% inflation next month (not annual, but MOM.)
I don’t think that is happening.
13 posted on 06/18/2025 5:15:47 AM PDT by Vermont Lt
To: Thank You Rush
Service would be telecom for example. A service industry would be impacted by tariffs for their capital expenditures: New systems, new computers, new vehicles, etc.
I used to run a CATV company. A lot of our wires, fittings, and electronics would have been subject to some of these tariffs.
14 posted on 06/18/2025 5:18:06 AM PDT by Vermont Lt
To: bert
Prices are fixin to get ready to go up
15 posted on 06/18/2025 5:20:21 AM PDT by AppyPappy (If Hitler were alive today and criticized Trump, would he still be Hitler?)
To: bert
Manufacturers estimated the average tariff rate they paid on their imports was about 35%, an increase of about 25 percentage points from six months ago; service firms reported an average tariff rate of 26%, up 17 points in the last six months.
I call bull crap on this. I'd like to see what products they're talking about because very few products have new tariffs on them yet. If the "average tariff rate" is 26%, how does their rate equal 35%? I think this is just a BS ploy to hike prices and use tariffs as the scapegoat for the price increase.
16 posted on 06/18/2025 5:29:59 AM PDT by econjack
To: bk1000
THE CC FEES TO BUSINESS ARE SUBSTANTIAL-—AS HIGH AS 3 1/2%
17 posted on 06/18/2025 5:39:48 AM PDT by ridesthemiles (not giving up on TRUMP---EVER)
To: bankwalker; ConservativeMind
>all income taxes need to be totally and permanently eliminated.
Well, as
1) Govt can borrow all it ‘needs’
2) The 16th violates 4th, 5th, 13th & 14th on its face == illegal/un-Constitutional
they should be eliminated...Y’DAY (but, what do *I* know, I can only read simple English)
Course, it’s all “legal” plunder via the 3-crooked-legs of the GOVT stool.
Black-robed crooks: Govt CAN tax
Retort: Never in question. The query of “WHAT for” vs. authority was never considered.
18 posted on 06/18/2025 5:45:01 AM PDT by i_robot73 (One could not count the number of *solutions*, if only govt followed\enforced the Constitution.)
To: econjack
Manufacturers = 35%, Service firms = 26%. It is “input materials” mostly.
19 posted on 06/18/2025 5:47:08 AM PDT by Drago
To: bk1000
"I haven’t carried cash in years, but I guess I’ll be going back to it."
Cash over card price difference locally for gas ranges from eight to
ten cents per gallon.
20 posted on 06/18/2025 5:51:43 AM PDT by chief lee runamok ( Le Flâneur @Large)
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41 next last
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson
