Introduction
A recently published article on CNBC reports that a majority of U.S. companies are increasing prices for consumers due to newly announced tariffs by former President Donald Trump. According to the piece, these cost hikes are swiftly passed to customers, calling into question who truly ends up paying the price of protectionist trade policies. A user submitted this article to DBUNK, asking a key question: If companies are passing tariffs onto consumers, how are these tariffs beneficial to American households or small businesses? Our team conducted a full fact-check to analyze the accuracy of this claim and assess the broader economic impact.
Historical Context
Tariffs — taxes placed on imported goods — have historically been used as a tool to protect domestic industries and reduce reliance on foreign production. Donald Trump’s first presidential term saw a wave of new tariffs, notably in the 2018–2019 trade war with China. While proponents argued these moves pressured trading partners to offer fairer deals and revived select industries, critics warned they burdened consumers with higher prices and disrupted supply chains. In 2025, Trump proposed a renewed set of “reciprocal tariffs,” reigniting debates around who really bears the brunt of trade restrictions. Against this backdrop, business surveys cited in the article suggest that many companies are already responding by raising prices.
Claim #1: “More than 35% of manufacturers and nearly 40% of service firms raised prices within a week of seeing tariff-related cost increases.”
This claim is accurate. According to the New York Federal Reserve’s May 2025 Business Leaders Survey, 35.9% of manufacturing firms and 39.8% of service firms reported implementing price increases within one week of experiencing cost increases tied to tariffs. These responses were collected specifically to monitor real-time adjustments businesses are making in the wake of the Trump administration’s trade proposals. The rapid pace of these price increases suggests that tariffs are having a near-immediate impact on business operations, supporting the article’s assertion about swift cost pass-through.
Claim #2: “Nearly nine out of 10 of the 300 CEOs surveyed in May said they have raised prices or planned to soon.”
This claim is substantiated by the referenced CEO survey conducted by Chief Executive Group and AlixPartners. The survey found that approximately 88% of executives indicated they had already raised prices or planned to in the near term due to increased costs, including those from trade-related disruptions such as tariffs. This substantial consensus among industry leaders strongly reinforces the article’s primary claim that costs are being passed to consumers — a key point of concern for households and small businesses alike.
Claim #3: “Trump’s tariffs created supply chain disruptions rivaling that of Covid-19.”
This claim, sourced from an anonymous respondent in the Institute for Supply Management (ISM) May 2025 manufacturing survey, represents an opinion rather than a confirmed data point. While it’s reported accurately in the article as a quotation, it is important for readers to understand that it reflects subjective experience rather than quantifiable evidence. That said, academic and industry research during prior tariff surges (2018–2020) did find that trade frictions caused delays and rising input costs comparable to early pandemic-related bottlenecks. While the comparison to COVID-19 is striking, it’s best understood as rhetorical emphasis used by professionals to describe the disruption’s severity.
Claim #4: “Tariffs remain a challenge, as it is not clear what duties apply.”
This statement is also drawn from survey-based feedback and illuminates a key issue: regulatory uncertainty. Trade experts and business groups alike have raised concerns about unpredictable policy shifts under former President Trump. Sudden announcements, unclear implementation timelines, and shifting exemption rules have historically plagued U.S. tariff rollouts. Therefore, this quote — while anecdotal — reflects a recurrent theme supported by broader industry concerns. The effect isn’t just higher prices, but also planning paralysis, as companies hesitate to commit to purchases or investments in an uncertain trade environment.
Conclusion
In conclusion, the CNBC article correctly reports that a majority of U.S. companies have either raised prices or plan to do so in direct response to tariffs introduced by the Trump administration. Data from the New York Fed and third-party business surveys support the claim that price increases happened quickly and were widespread across both the manufacturing and service sectors. While some of the statements in the article come from anonymous commentary or subjective interpretation, they align with existing patterns observed in previous tariff cycles. Consumers — including small businesses and households — are indeed likely to shoulder much of the cost burden, casting doubt on the idea that such policies provide them economic relief. Although the article focuses on the short-term consumer impact, it is presented fairly and is well-supported by reputable sources.
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