Tariffs worry US manufacturers nationwide, raise prices: Fed

Manufacturers across the United States are worried by President Donald Trump's trade policies, which many blame for higher prices and supply disruptions, according to a Federal Reserve survey released today.

Manufacturers across the United States are worried by President Donald Trump's trade policies, which many blame for higher prices and supply disruptions, according to a Federal Reserve survey released today.

For the moment the extent of any pass-through to consumer prices was "slight to moderate," according to the Fed's "beige book" survey of the economy, although this was expected to intensify in some areas.

Trump has shown no sign of tapping the brakes in a trade war with the principal US economic partners, with scores of billions in imports now subject to border taxes and more likely on the way.

The policy has alarmed Republican leaders and US industry, who fear lost markets and rising prices, and drawn sharp retaliation from outraged allies.

"Manufacturers in all districts expressed concern about tariffs and many districts reported higher prices and supply disruptions that they attributed to the new trade policies," the Fed survey said.

"Tariffs contributed to the increases for metals and lumber," it added. "However the extent of pass-through from input to consumer prices remained slight to moderate."

The Fed survey, which gathers accounts of economic activity from businesses in the central bank's 12 regions, was completed July 9, meaning the effects of Trump's trade policies were still beginning to filter through to domestic markets.

The report otherwise portrayed an economy in good health, growing for the most part at a "moderate or modest" pace, and with a tight labor market pressuring employers to raise wages as they struggle to find workers.

Growth was "strong" in the Dallas region, an energy hub which has been boosted by rising oil prices, but trade uncertainty "weighed on outlooks." An energy industry lobby group this week complained the Trump administration had declined to exempt key oilfield products from tariffs on metals.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)