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