Fact Check Analysis: Most companies are already raising prices or plan to because of tariffs, data shows



Introduction

A recent article from CNBC claiming that most companies are raising prices—or plan to—due to new tariffs has generated concern among our users, many of whom are questioning: If tariffs are meant to help American consumers or small businesses, why are costs rising instead? The article heavily leans on surveys and assessments from the New York Federal Reserve and other industry sources. Given the significance of tariffs in shaping U.S. economic policy, we reviewed this article’s claims thoroughly to verify their accuracy and ensure they weren’t taken out of context.

Historical Context

Tariffs have long been used as a tool in international trade negotiations, with administrations on both sides of the political aisle applying them to influence foreign competitors, protect domestic industries, and rebalance trade deficits. Former President Trump utilized tariffs expansively during his first term, especially targeting China, Mexico, and the European Union. Tariffs often garner support as a form of economic nationalism but have also been criticized for producing unintended consequences—such as increased costs along supply chains that get passed on to consumers. The article looks at tariff announcements made in 2025 and how companies are reacting amid policy uncertainty.

Fact-Check of Specific Claims

Claim #1: “Most companies have passed along at least some of President Donald Trump’s tariffs onto customers.”

This claim is largely accurate. According to the New York Federal Reserve’s May 2025 survey, about 77% of service firms and 75% of manufacturers reported passing on at least some of the cost increases from tariffs to their customers. These figures align closely with what the article describes. However, what the article omits is that the degree to which costs are passed along varies depending on the industry, competitive landscape, and supply chain flexibility. Not all businesses responded the same way, and not every consumer is equally impacted.

Claim #2: “More than 30% of manufacturers and roughly 45% of service firms passed through all of the higher cost to their customers.”

This statement is mostly correct. Based on the same New York Fed survey, approximately 31% of manufacturers and 44% of service-sector firms said they passed the full cost of tariff-related increases onto clients. These numbers match what was reported in the article. However, the article does not specify whether these are one-time price adjustments or part of a broader strategy, which limits the reader’s understanding of the long-term impact. It also does not clarify that another significant share of businesses absorbed some or all of the costs themselves to remain competitive.





Claim #3: “Nearly nine out of 10 CEOs said they have raised prices or planned to soon.”

This claim is supported by available data. According to the Chief Executive Group and AlixPartners survey mentioned in the article, around 90% of CEOs did indicate plans to raise prices or had already done so in response to rising costs, including those from tariffs. What’s missing from the article is broader context—such as inflationary pressures unrelated to tariffs—like wage increases, supply chain disruptions, and energy prices—all of which also drive pricing decisions. While tariffs are a factor, the exclusive focus on them implies a direct causality that doesn’t capture the complexity of price setting.

Claim #4: “Trump warned Walmart to ‘eat the tariffs’ and that he would ‘be watching.’”

This claim is accurate. In May 2025, former President Trump did issue a warning via social media directed at Walmart, urging the retailer not to pass tariff costs onto consumers. The article presents this correctly, but does not mention that this style of direct intervention—while uncommon historically—was a hallmark of Trump’s previous administration as well. This context would be important for readers unfamiliar with past examples of executive pressure on private companies.





Conclusion

In conclusion, the article presents mostly accurate information backed by credible survey data from the New York Federal Reserve and business organizations. However, it lacks critical nuance and broader economic context. By focusing heavily on the tariff angle, the article risks overstating the role of trade policy in recent price hikes while downplaying other inflationary forces. This could mislead readers into thinking tariffs are the dominant or sole cause of higher costs. The article also flirts with a negative bias toward the Trump administration’s policies without openly stating it, using loaded language such as “chaos” and emphasizing executive pressure, while not equally evaluating the policy’s intended benefits. Nonetheless, the factual basis of the data cited remains strong.





Encourage Readers to Take Action

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Link to Original Article

https://www.cnbc.com/2025/06/04/companies-already-raise-prices-or-plan-to-blaming-tariffs-data-shows.html

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