Let’s talk about something that’s hitting your wallet—tariffs. You’ve probably heard about the tariffs former President Donald Trump placed on imported goods, especially from countries like China. But you might be wondering, who’s paying for them? According to a recent survey by the Federal Reserve Bank of New York, it turns out you are, at least in part.
Businesses are passing the buck to you
In early May, the New York Fed surveyed businesses across New York and northern New Jersey to understand how Trump-era tariffs are affecting their operations. The results were clear: most companies are not absorbing those extra costs themselves—they’re passing them on to their customers through higher prices.
That means when businesses are charged more to import parts or products, you’re likely seeing it in the form of more expensive goods and services. About three-quarters of businesses facing tariff-related cost hikes said they raised prices on customers, some a little, others a lot.
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Manufacturers hit the hardest
Manufacturing companies have been particularly affected. The survey found that 90% of manufacturers import some of their goods. On average, imports make up 30% of their total inputs. That’s a big chunk. And the average tariff rate manufacturers are now paying is 35%, which is a jump of 25 percentage points in just six months.
For service firms, it’s a similar story, though slightly less intense. Around 75% of service firms also rely on imported goods, and they’re now paying an average tariff rate of 26%, up by 17 points over the same period.
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How quickly prices went up
Here’s where it gets personal. More than half of the businesses that faced higher tariff costs said they raised their prices within a month, and some did it within a day or a week. Another quarter said they planned to increase prices within one to three months. So, these costs are getting to you fast.
Not all companies passed on the full increase. According to the survey:
- About 30% of manufacturers and 45% of service firms passed all the extra costs to customers.
- Another 45% of manufacturers and a third of service firms passed on some, but not all, of the cost.
Either way, customers like you are footing a good part of the bill.
Future still uncertain
What happens next is anyone’s guess. The survey ended before a temporary cut in Trump’s tariffs on China (from 145% down to 30%) and before several federal court decisions that struck down some of those tariffs. So while we’ve seen some movement, there’s still a lot of uncertainty.
About half of the surveyed service businesses expected tariffs to go up shortly, while a third thought they might come down.
So what does this mean for you?
In short, Tariffs might sound like a penalty on foreign countries, but the real cost often ends up in your shopping cart. Whether you’re buying a car, booking a service, or shopping for electronics, the extra costs businesses face are making their way to your receipt.
And with businesses unsure about where trade policy is headed, price hikes could stick around—or even get worse.
