August 2018 - The latest survey by the Federal Reserve shows impacts of the Trump administration’s tariffs on steel and aluminum regionally. While several survey respondents in the bank’s Boston district expressed concern about the effect of the trade war on sales, none reported any sales declines as a result. Several said that costs were rising, both for raw materials and freight.
In the New York district, both manufacturers and wholesale distributors indicated that activity continued to expand at a brisk pace. Several manufacturers remarked that tariffs have raised their costs. Moreover, uncertainty about future trade policy was cited as a major concern, particularly in parts of upstate New York, where there is substantial trade with Canada.
In the Philadelphia district, manufacturing activity maintained a moderate pace of growth. One machinery builder said the effects of the steel tariffs have been chaotic to its supply chain—disrupting planned orders, increasing prices and prompting some panic buying.
Manufacturers and builders in the Cleveland district commented widely that import tariffs were lifting steel and aluminum prices. In some cases, manufacturers noted a rush to purchase metals in anticipation of additional price increases. Companies overall managed to raise their prices to compensate, at least partially, for rising raw materials and transportation costs. Aside from that, firms either held their prices level or cautiously nudged them higher.
