"Moore, a Heritage Foundation economist, explained the import taxes have directly increased costs for U.S. businesses and consumers by "clobbering" medium-sized manufacturers. He said he noticed an article in the Wall Street Journal that the single fastest growth in commodity prices right now is coffee."Well, guess what? We put a 50% tariff on coffee," Moore said. "So, yeah, the coffee price went up.""
"Independent data suggests tariffs are already pressuring prices and manufacturing. In a May 2025 New York Fed survey, many exposed firms reported passing tariff costs to customers, and about a third of manufacturers said they fully passed on those costs. Meanwhile, the Yale Budget Lab found new tariffs have led to a 2.3% increase in the overall U.S. price level and a $3,800 loss in purchasing power per household (in 2024 dollars)."
Tariffs imposed under the Trump administration have increased costs for U.S. businesses and consumers and contributed to higher inflation and weaker GDP. Medium-sized manufacturers experienced pronounced harm, with some adding surcharges of around 20% to offset higher input costs. A May 2025 New York Fed survey found many exposed firms passed tariff costs to customers, and about a third of manufacturers fully passed those costs on. The Yale Budget Lab estimated new tariffs raised the U.S. price level by 2.3% and reduced household purchasing power by about $3,800 (2024 dollars). ISM Manufacturing PMI readings signaled ongoing factory contraction.
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