Tariffs pushed up the prices of goods made in the USA as well as imports, economists at the Federal Reserve Bank of New York reported on October 6, 2026.
What the research found
- For each percentage point increase in average tariffs, consumer goods prices rose about a quarter of a percent after a year.
- About two-thirds of the effect came directly from pricier imports. The other third came from USA-made goods.
- USA producers raised prices because they pay more for imported parts and materials, and because they face less pressure when competing imports cost more. The input-cost effect was the larger of the two.
- Import prices respond within months. USA-made prices adjust over six to twelve months.
- CNBC reported that tariffs added 2.9 percentage points to prices across 67 categories of goods as of February 2026.
Why it matters for Made in USA
Buying USA-made does not fully shield shoppers from tariff costs, because many USA products use imported inputs. That is the same imported content that decides whether a product can carry an unqualified Made in USA claim. Products made with all or virtually all USA content are the least exposed. Related: USA home goods makers and tariffs.
FAQ
Do tariffs raise prices on USA-made products?
Yes. The New York Fed found about one-third of the tariff effect on consumer prices came from USA-made goods.
Why would USA-made goods cost more?
Producers pay more for imported parts and materials, and they can raise prices when competing imports get more expensive.
Who wrote the study?
Mary Amiti, Sebastian Heise and David E. Weinstein, in a New York Fed staff report and blog post.
Source & credit
Source: Federal Reserve Bank of New York, Liberty Street Economics, October 6, 2026: “How Fast Do Tariffs Pass Through into Consumer Prices?” and Staff Report 1201. Additional reporting: CNBC.