American manufacturers face higher costs due to tariffs

US manufacturers were facing higher input costs due to the Trump administration’s tariffs against imports, the US Federal Reserve reported on Wednesday.

According to the Fed’s newly released “Beige Book” report, economic activity expanded across the US at a modest to moderate pace between September and mid-October.

The report said that US manufacturers in most areas reported moderate output growth, while employment also expanded “modestly or moderately” across the nation.

“Employers throughout the country continued to report tight labor markets and difficulties finding qualified workers, including highly skilled engineers, finance and sales professionals, construction and manufacturing workers, IT professionals, and truck drivers,” according to the Fed report.

However, the central bank also noted that tariffs on US imports are pushing prices higher according to the information from its 12 regional Federal Reserve Banks across the country.

“Manufacturers reported raising prices of finished goods out of necessity as costs of raw materials such as metals rose, which they attributed to tariffs,” the Fed said in the report.

The Federal Reserve Bank of Chicago, which oversees the Midwestern region, said that retailers across numerous sectors expected consumers to see the impact of US tariffs on imports by early 2019.