Discussion Paper

Tariff Cost Pass-through Among Fifth District Firms


Abstract: With tariffs top of mind for many firms in the Fifth District, the Richmond Fed's August business surveys sought to understand how firms have reacted to changing trade policy. As we saw in our March surveys and May surveys, firms continued to report heightened uncertainty around tariff policy. For some, this uncertainty has led to concerns about earnings and the effects on customers. One commercial laundry machine manufacturer stated, "We cannot predict cost for products, which means we have no idea as we sign contracts if we will be able to build the equipment and cover costs or make profits." Meanwhile, a factory equipment manufacturer stated, "I am very concerned about the impact of tariffs on my customers."

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2025-08-26