More Tariff Pass‑Through Is in the Pipeline

Jaison Abel, Mary Amiti, Richard Deitz, Sebastian Heise and Nick Montalbano

No 20260708, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: The past year brought dramatic changes to U.S. trade policy, including sweeping new tariffs, as well as a Supreme Court decision that further reshaped the tariff landscape. Many businesses saw their costs increase significantly and faced complex decisions about whether to absorb the tariffs through lower profit margins, raise their prices to recover the higher costs, or some combination of the two. Last year, we found that most businesses had passed on at least some of these higher costs to their customers through higher prices. Now, over a year later, have businesses finished adjusting prices, or do further tariff-induced price increases lie ahead? Our latest regional business surveys reveal that nearly half of firms that have paid tariffs still plan additional price increases to offset these costs, with some expecting to raise prices six months or more in the future.

Keywords: tariffs; pass-through; imports; prices (search for similar items in EconPapers)
JEL-codes: E31 F13 (search for similar items in EconPapers)
Date: 2026-07-08
References: Add references at CitEc
Citations:

Downloads: (external link)
https://libertystreeteconomics.newyorkfed.org/2026 ... -is-in-the-pipeline/ Full-text (text/html)
https://libertystreeteconomics.newyorkfed.org/wp-c ... rough_ChartData.xlsx Chart Data (application/vnd.ms-excel)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fednls:103505

Ordering information: This working paper can be ordered from

DOI: 10.59576/lse.20260708

Access Statistics for this paper

More papers in Liberty Street Economics from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().