Almost half of American businesses hit by tariffs haven’t finished raising prices. They’re just getting started.
The Federal Reserve Bank of New York published findings on Wednesday showing that 47% of service firms and 44% of manufacturers in its district are planning additional tariff-related price hikes. Of those service firms, 31% expect to push prices higher within the next six months. For manufacturers, that figure is roughly 37%.
The tariff math that won’t quit
US average tariff rates jumped from 2.6% to 13% during 2025, a fivefold increase that sent shockwaves through supply chains.
American firms and consumers absorbed somewhere between 86% and 94% of those tariff costs during different periods of 2025. In plain English: the tariffs weren’t punishing foreign exporters so much as taxing domestic businesses and the people who buy their products.
