Nearly Half of Tariff-Paying Firms Plan More Price Hikes, Some Delayed Beyond 6 Months
Updated
Updated · Liberty Street Economics - · Jul 8
Nearly Half of Tariff-Paying Firms Plan More Price Hikes, Some Delayed Beyond 6 Months
3 articles · Updated · Liberty Street Economics - · Jul 8
Summary
47% of tariff-paying service firms and 44% of manufacturers still expect tariff-driven price increases, with 16% of service firms and 7% of manufacturers pushing hikes beyond six months.
Fixed-price contracts, gradual “trickle up” pricing and uncertainty over future tariff rates or exemptions are delaying pass-through rather than eliminating it.
Among firms that directly paid tariffs, only about 30% of service providers and 20% of manufacturers said they had already fully passed those costs on to customers.
The New York Fed analysis says the pattern points to tariff inflation arriving incrementally over much of a year or longer, extending price pressure well after tariffs are imposed.