The Federal Reserve Bank of Cleveland published a SORCE Insights report summarizing tariff-related questions from the February round of its Survey of Regional Conditions and Expectations, finding that many firms expect tariffs to increase costs, push up prices, and reduce demand. Sixty-four percent of surveyed companies said tariffs would affect their business, while 12% expected no impact and 24% were unsure. Among firms anticipating an impact, 85% expected higher input costs, 75% expected to increase prices, 60% expected demand to decrease, and 75% expected no impact on employment. The most common preparatory actions were passing anticipated cost increases to customers (46%), finding new domestic suppliers (29%), and moving purchases ahead of potential tariffs (27%), with the report also providing industry breakdowns and charts.
Federal Reserve Bank of Cleveland 2025-04-22
Federal Reserve Bank of Cleveland survey finds most Fourth District firms expect tariffs to raise costs and lower demand
The Federal Reserve Bank of Cleveland's SORCE Insights report reveals that 64% of surveyed firms anticipate tariffs will increase costs, raise prices, and reduce demand. Among these, 85% foresee higher input costs, 75% plan to raise prices, and 60% expect decreased demand, with minimal employment impact. Common strategies include passing costs to customers, sourcing domestically, and advancing purchases.