The US Federal Reserve's Beige Book highlights the impact of tariffs on businesses across its 12 districts. Most districts reported companies anticipating significant input cost increases due to tariffs. Many firms have already received notifications from suppliers regarding cost hikes.
Companies reported implementing tariff surcharges or shortening price horizons to offset trade policy uncertainty. Most expected to pass additional costs to customers. However, some reported margin compression due to rising costs and weak demand, particularly among consumer-oriented companies.
President Trump suggested that the US is gaining significantly from tariffs. He believes trade partners are approaching the administration to reach agreements, potentially leading to substantial tax reductions. He stated this would allow the US to avoid being taken advantage of by other countries.