Why We’re Fact-Checking This Story
The article has raised concerns among readers about the real impact of newly approved U.S. tariffs. It claims most companies are passing these added costs directly to customers, prompting users like you to ask: if the consumer ends up paying more, how does this policy benefit American families or small businesses? We’ve done a full fact-check to bring clarity to these claims, highlighting what the data actually shows and where the article may lack necessary context or balance.
Understanding the Backdrop
Tariffs have long been a contentious economic policy tool. Traditionally, they are used to protect domestic industries by making foreign products more expensive. The Trump administration has continued this approach, citing the need for “reciprocal” tariffs to correct what they call unfair trade balances. Economists have often debated the efficacy of such measures, particularly when it comes to their unintended consequences—such as price increases for consumers and disruptions to supply chains. With another wave of tariffs announced in April 2025 and deadlines looming in July, the stakes have risen significantly for both large corporations and everyday consumers.
Claim 1: “A majority of companies have passed along at least some of President Donald Trump’s tariffs onto customers.”
This claim is accurate and supported by economic survey data. According to the New York Federal Reserve’s May 2025 survey, 77% of service firms and 75% of manufacturing firms that experienced cost increases from tariffs said they passed at least some of those costs onto customers. The article fairly represents this data without distortion.
Source: New York Fed Business Leaders Survey
Claim 2: “More than 30% of manufacturers and roughly 45% of service firms passed through all of the higher cost to their customers.”
This claim is also correct and based on the same New York Fed data. The report found that for firms that experienced cost jumps due to tariffs, about a third of manufacturers and nearly half of service-oriented businesses passed on the full cost to consumers. However, what’s missing here is context—the article does not mention that these rates vary sharply by industry and size of business, nor does it explore how long such price increases typically last or whether businesses absorbed initial costs before passing them on.
Claim 3: “Nearly nine out of 10 CEOs surveyed said they raised prices or planned to soon.”
This is mostly accurate but lacks sourcing depth in the article. While the article correctly cites the Chief Executive Group and AlixPartners survey, it doesn’t clarify the sample size’s limitations or industry breakdown. The survey polled 300 CEOs, a relatively small sample, and didn’t differentiate between companies more or less exposed to global supply chains. Such nuance is important as tariffs affect sectors unevenly—manufacturing responds differently than tech or education sectors, for example.
Source: Chief Executive and AlixPartners Survey, May 2025
Claim 4: “Trump’s tariffs alone have created supply chain disruptions rivaling that of COVID-19.”
This quote came from a respondent in a survey published by the Institute for Supply Management (ISM) and reflects individual opinion, not an empirical comparison. While the article attributes this opinion correctly, presenting it without clarification might mislead readers into believing it’s factual. There’s currently insufficient evidence to substantiate that tariff-related disruptions match the scale of COVID-19’s global logistical shutdowns. Analysts do report increasing complexity and delays in supply chains, but this exaggeration blurs the line between firsthand commentary and generalizable truth.
Source: Institute for Supply Management
Final Assessment
The article is largely accurate in reporting that many companies are passing tariff-related costs to consumers, according to several reputable surveys. However, it consistently leans into worst-case interpretations without highlighting key variables such as the types of businesses most affected, the short-term versus long-term price impact, or whether consumers eventually seek alternatives to avoid price increases. While the claims made are mostly backed by data, the overall tone risks framing a single narrative—that tariffs are solely harmful—without giving weight to other economic angles or policy goals. This leaves the reader without a full understanding of the broader cost-benefit calculus often cited by trade officials in favor of tariffs.
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