A majority of manufacturers in the New York area claim that the Trump administration’s tariffs have boosted input costs and selling prices for local businesses, according to a new report that suggests that businesses are feeling pressure from the looming trade war.
“Roughly two-thirds of manufacturing respondents indicated that tariffs have already had at least some upward effect on their overall input costs, and more than 70 percent anticipate that changes in trade policy will push up input costs in 2018 and 2019,” the Federal Reserve Bank of New York reported Thursday, based on the results of a new survey.
The survey also revealed that approximately 50 percent of manufacturers and 40 percent of service firms view the ongoing trade disputes as harmful for 2018 profits.
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As part of President Trump’s efforts to revise trade deals, the U.S. has levied tariffs on a variety of goods, including those from China, Mexico, Canada, and the European Union. For example, the Trump administration has implemented broad-based tariffs of 25 percent tariff on steel and 10 percent tariff on aluminum.
Meanwhile, lawmakers have been critical of the tariffs and some have sought to limit Trump’s ability to impose tariffs in the future, although the Senate has blocked legislation on two occasions that allow Congress to prevent the executive branch from imposing tariffs.
But Sen. Bob Corker, R-Tenn., said Tuesday that he is seeking to insert a provision to the Federal Aviation Administration reauthorization bill that would restrict Trump’s authority to implement tariffs.
“I understand the longer these tariffs are in place, the more difficult it is to unwind that,” Corker said. “I’m understanding the dynamic continues to evolve against our position.”
