Almost half of American businesses hit by tariffs haven’t finished raising prices. They’re just getting started.

The Federal Reserve Bank of New York published findings on Wednesday showing that 47% of service firms and 44% of manufacturers in its district are planning additional tariff-related price hikes. Of those service firms, 31% expect to push prices higher within the next six months. For manufacturers, that figure is roughly 37%.

The tariff math that won’t quit

US average tariff rates jumped from 2.6% to 13% during 2025, a fivefold increase that sent shockwaves through supply chains.

American firms and consumers absorbed somewhere between 86% and 94% of those tariff costs during different periods of 2025. In plain English: the tariffs weren’t punishing foreign exporters so much as taxing domestic businesses and the people who buy their products.

The New York Fed’s regional surveys found that two-thirds of service firms and nearly all manufacturers are importing inputs that fall under tariff-affected categories. Think steel, aluminum, and the long list of intermediate goods that go into everything from cars to kitchen appliances.

What this means for the Fed and interest rates

Consumer inflation expectations showed a rise in early July, correlating with firms’ announced price adjustments.

Crypto’s tariff sensitivity is real

Bitcoin dropped over 5% in February 2026 after new tariff announcements hit the wire.

The mechanism isn’t complicated. Tariffs drive inflation. Inflation constrains the Fed. A constrained Fed keeps rates high. High rates pull capital away from risk assets and into safer, yield-bearing instruments like Treasuries. Bitcoin and altcoins, which thrive on liquidity and risk appetite, end up on the wrong side of that trade.