US tariff uncertainty raising costs, Fed says

Looming threat of levies begins to alter consumer behavior, business operations

Pervasive uncertainty due to tariffs is increasing costs for US businesses and consumers, leading to a rush to buy inventory and a gloomy outlook for the future, according to the Fed's first economic survey since late February, when US President Donald Trump began imposing duties on other countries.

The US Federal Reserve on Wednesday released its latest edition of the Beige Book to summarize economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from its 12 regional districts.

The April 2025 report, based on surveys conducted since February, noted that "uncertainty around international trade policy was pervasive across reports", contributing to a weakening economic outlook and dampened business confidence nationwide.