Fed’s BEIGE: The high prices caused by customs tariffs

New report from Federal Reserve It has shown that American companies report increased costs due to the customs tariff, which they expect to be transferred to a large extent to consumers in the form of higher prices.

On Wednesday, the Federal Reserve released its last version of the Beige book, which summarizes economic conditions in both the 12 regional regions in the Federal Reserve and is published eight times a year. The uncertainty about international commercial policy is “widespread” and anxiety about the customs tariff for imported goods, which the president Donald Trump He has increased his efforts to restore balance in global trade, which leads to high costs for companies and consumers alike.

“Most regions have noticed that companies expect a high growth cost of the production cost of customs tariffs. Many companies have already received notifications from suppliers that the costs will increase,” said the Federal Reserve Summary. “The companies have reported the addition of additional introductory fees or the failure of pricing horizons to calculate the uninterrupted commercial policy.”

“Most companies that are expected to pass through additional costs for consumers. However, there were reports on margin pressure amid increased costs, as demand remained lukewarm in some sectors, especially for companies facing the consumer.”

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In the Boston region, the Federal Reserve indicated that “retail and manufacturing communications have warned this Cost -increasing Associated with definitions, although it still must be determined, it can lead to a significant passage of their production prices. “

“The expected success rates were large, as more than half of the manufacturers passed completely, most of them without delay. One of the manufacturers has shortened the duration of their prices to 30 days in anticipation of the need to quickly control prices,” continued.

Boston also referred to this.Traveling from Canada It has decreased significantly, and communications are afraid that the summer will move from Europe and China as well due to negative reactions to the US tariff policies. “

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The auto industry witnessed at least a short -term batch of A tariff of uncertaintyWith consumers rushing to buy cars 25 % before cars enter imported cars, according to reports from many federal reserve areas.

“Car dealers I mentioned a strong sales increase after a slight increase in the recent period. Multiple contacts highlighted that sales amounted to record levels in March. However, all of our auto industry connections attributed this reinforcement to purchases forward to advance the potential tariffs and do not expect the force to continue to demand. “

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House builders in many federal reserve areas noticed that the customs tariff would increase Building costs It caused a slowdown due to uncertainty.

The definitions also had an effect on Shipping industry. The Richmond Fed team indicated that one of the ports in its area reported a 25 % “unexpected and disappointing” decrease in the monthly export shipments.

Trump administration plan to impose a Port call fees on Chinese ships Also note to support local shipbuilding as a source of cost pressure.

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“The port contacts were particularly concerned about the proposed call tax tax on Chinese ships, which, at their estimates, can escalate the costs of processing goods,” wrote The Richmond Fed.