Survey: Regional companies said tariffs would raise costs, lower demand
Many companies in the Cleveland Fed’s District said tariffs would raise their costs and lower demand, according to a new report summarizing the results of several tariff questions included in the February round of the Survey of Regional Conditions and Expectations (SORCE).
Sixty-four percent of companies surveyed said tariffs would impact their business, while 12 percent expected no impact (24 percent were unsure).
Of those who reported that tariffs would affect their business:
- 85 percent expected higher input costs
- 75 percent expected to increase prices
- 60 percent expected demand to decrease
- 75 percent expected no impact on employment
The survey also asked “What actions, if any, are you taking in anticipation of tariffs on imports?” The most common responses were “Passing anticipated cost increases through to customers” (46 percent), “Finding new domestic supplier(s)” (29 percent), and “Moving up purchases ahead of potential tariffs” (27 percent).
The report also includes several charts, including a breakdown by industry.
Read the report: SORCE Insights: An Initial Look at the Anticipated Impact of Tariffs on Fourth District Businesses
More SORCE data: The Survey of Regional Conditions and Expectations
Federal Reserve Bank of Cleveland
The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.
The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.
Media contact
Chuck Soder, chuck.soder@clev.frb.org, 216.672.2798
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The Federal Reserve Bank of Cleveland (commonly known as the Cleveland Fed) is part of the Federal Reserve System, the central bank of the United States.