Tariffs linger as firms roll out 'trickle-up' price hikes, fueling ongoing inflation
New York Fed findings show tariffs aren’t a one-off price shock: about 47% of service firms and 44% of manufacturers plan additional tariff-driven price increases, often using a slow, 'trickle up' pricing approach that lets costs creep to consumers over months. The policy has been revived through sections 122 and 301 after IEEPA tariffs were struck down, and Fed research links tariff costs to higher inflation (Dallas Fed: core inflation ~3.2% in March vs ~2.3% without tariffs). Projections from Tax Foundation suggest hundreds of dollars per American household in tariff-related costs this year and next, with pass-through prices typically lagging several months, meaning consumers will continue feeling price increases as tariffs persist.
