- As businesses pass down the cost of tariffs to consumers in the form of raised prices, the New York Federal Reserve found that as of last month, many businesses were also raising prices on products unaffected by the levies. Economists said these pricing choices are taking advantage of the uncertainty of unpredictable tariffs, but could worsen the potential for inflation.
Not only are companies ratcheting up prices of imported products to offset the cost of tariffs, they’re also raising the cost of goods unaffected by those taxes, a New York Federal Reserve survey and Beige Book report released Wednesday found.
