YOUNGSTOWN, Ohio – A new survey released by the Federal Reserve Bank of Cleveland shows most companies believe tariffs proposed by the Trump administration would have an impact on business.

The Cleveland Fed’s Survey of Regional Conditions and Expectations, or SORCE, posed five questions to businesses in the fourth district, which includes Ohio, western Pennsylvania, eastern Kentucky and the panhandle of West Virginia.

Approximately two-thirds, or 64%, of respondents replied that tariffs on imports would impact their business. Another 12% replied that tariffs would not impact their business, and 24% of respondents were unsure.

Those businesses within specific industry sectors reported varying degrees of impact, the survey showed.

Eighty-two percent of retailers who responded, for example, reported that tariffs would impact their business, while 4% said they would not. Another 14% were unsure, according to the survey. Three-quarters of manufacturing respondents, or 75%, and 70% of construction and real estate firms reported that tariffs would impact their business.

On the other hand, just 38% of respondents in the financial services industry said tariffs would have an impact; 50% were unsure; and 12% believed they would have no effect.  Another 38% of respondents in the transportation markets said tariffs would have an impact; 25% were unsure; and 38% felt that tariffs would not impact business. 

Twenty-one percent in the professional and business services sector reported tariffs would affect their business.

Of those companies that reported that tariffs would have an impact, 60% said demand for their products or services would decrease; 31% anticipated no change; and 9% reported demand would increase.

Another 85% of the respondents said tariffs would increase their input costs, while 12% said there would be no change. The survey also showed that 75% reported that tariffs would increase their selling prices; 19% reported they expected no change; and 6% expect prices to decrease.

Most respondents – 75% – said tariffs would not affect employment at their company. However, 22% anticipate that employment would decrease because of the tariffs.

In response to what actions companies are taking in anticipation of tariffs, 46% replied that they would pass on cost increases to customers; 29% said they were searching for new domestic suppliers; and 27% said they would move purchases ahead in anticipation of new tariffs.

Thirteen percent said they would source new foreign suppliers, while 4% said they would bring outsourced production or processes in-house. Twenty-six percent said they are taking no actions as of now.

Approximately 38% of companies responded that, compared with a year ago, there is no change in their ability to pass costs on to customers, while 36% said it would be “somewhat harder.” Another 12% said it would be “significantly harder” to pass on costs, while 13% said it would be “somewhat easier.” Just 1 percent said it would be “much easier.”

The surveys were sent out in February, just as the first round of tariffs were enacted by the Trump administration. The survey predates the latest escalations in the trade war with China, for example, and a 25% tariff on imported automobiles.

Pictured at top: Shipping containers are stored at Bensenville intermodal terminal in Franklin Park, Ill., on April 6, 2025. (AP Photo | Nam Y. Huh)