Fed survey finds tariff costs still pushing firms toward price increases

A New York Fed report found that many companies are still adjusting prices more than a year after fast-moving tariff changes began.

Roughly 30% of service businesses and nearly 40% of manufacturers surveyed in May planned another price increase within six months. Another 16% of service firms and 7% of manufacturers expected increases after that.

Tariff exposure was broad: two-thirds of service companies and almost all manufacturers used at least some imported inputs. Among importers, 40% of service businesses and 70% of manufacturers paid tariffs directly in the previous 12 months.

The report said fixed-price contracts, gradual pricing strategies and uncertainty over tariff rules, exemptions and foreign responses can stretch tariff-related price effects over time.

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