Trump Trade War Is Raising Prices for U.S. Manufacturers, N.Y. Fed Survey Says

President Donald Trump's trade tariffs already have led to increases in the price of raw materials and other "input" costs for some 68% of manufacturers in the New York area, according to a new survey. What's more, roughly half of manufacturers expect to pass the extra costs along to consumers. "In assessing the overall effect of trade policies on the bottom line, 51 percent of manufacturers perceived a negative effect in 2018, while 44 percent anticipated a negative effect in 2019," according to a summary of the results. The New York Fed's report is among the first to highlight the early effect of the president's tariffs on the economy. While Trump says his campaign to reduce the $552 billion U.S. trade deficit will protect domestic industries and create jobs, business groups including the U.S. Chamber of Commerce and National Retail Federations have argued that the policies will simply drive up prices for American consumers.