US: Businesses Worried About Rising Inflation Due to Increased Tariffs (Fed)

American companies are voicing concerns about a potential resurgence of inflation, primarily attributed to the widespread increase in tariffs announced by President Donald Trump. Nevertheless, they remain optimistic about the forthcoming months, according to a survey released Wednesday by the Federal Reserve.

” Businesses in several Districts indicated tariffs pose a significant upside risk to inflation,” the Federal Reserve stated in its Beige Book, which is based on insights gathered from business leaders between late October and mid-November.

During his first term, Donald Trump made tariff increases a fundamental aspect of his trade policy. Following his return to the White House, he has already pledged to impose a 25% tariff on Canada and Mexico, two of the United States’ major trading partners, which are ostensibly protected under a free trade agreement.

As a result, prices for many imported goods are anticipated to rise.