WASHINGTON. A growing number of U.S. businesses are raising prices in response to increased tariffs, according to new data from the Federal Reserve Bank of New York. The survey, released on June 4, 2025, highlights how recent trade policy measures have rippled through the economy, with a majority of companies passing cost increases on to consumers.
Service and Manufacturing Sectors Respond Swiftly
In May, 77% of service-sector firms and 75% of manufacturers affected by higher tariffs said they had raised prices, according to the New York Fed. Of those, more than 30% of manufacturers and roughly 45% of service firms passed along the full cost of tariff-related increases.
Notably, price adjustments were implemented quickly. The report found that 35% of manufacturers and nearly 40% of service companies raised prices within a week of the new costs taking effect.
Tariffs Return to Center Stage
The Trump administration reintroduced a new wave of tariffs in April, affecting imports from more than 180 countries and territories. While some of those measures were paused, a critical July 9 deadline now looms for possible reinstatement.
Despite the widespread impact, most executives have refrained from openly criticizing the policy. However, anonymous feedback collected through industry surveys has revealed growing concern.
In a recent report from the Institute for Supply Management (ISM), one respondent remarked: “The administration’s tariffs alone have created supply chain disruptions rivaling that of COVID-19.” Another added, “Chaos does not bode well for anyone, especially when it impacts pricing.”
CEO Insights Confirm Trend
A separate survey by Chief Executive Group and consulting firm AlixPartners found that nearly 90% of CEOs had either already raised prices or planned to do so. Roughly 70% of executives said they expect those increases to exceed 2.5%.
In ISM’s services sector responses, one participant noted: “Tariffs remain a challenge, as it is not clear what duties apply. The best plan is still to delay decisions to purchase where possible.”
Outlook Remains Uncertain
With the July 9 deadline fast approaching, companies continue to monitor trade policy developments closely. Many remain cautious about forward planning amid ongoing uncertainty and cost volatility.
According to CNBC, the data paints a picture of a business environment where tariffs are not just a foreign policy tool, but a domestic pricing pressure with broad consumer implications.
