Tariffs Can Raise Prices of U.S.-Made Goods Too
By Sam Alpert, President and Mortgage Loan Originator, NMLS #1961555
"Made in the USA" does not mean a product is untouched by tariffs. American manufacturers can still rely on imported parts and materials. When those inputs cost more, making the finished product costs more too.
New York Fed researchers also found another channel: when competing imported goods become more expensive, American producers face less pressure to keep their prices down.
How big is the effect?
The researchers estimate tariffs added 2.9 percentage points to non-oil consumer goods inflation by February 2026. Their sample excludes services, so that figure is not a contribution to the entire consumer-price index.
In a modeled scenario with a 10% tariff on all imports, consumer goods prices would be 2.6% higher after 12 months. Roughly two-thirds of that effect comes from imported consumer goods and one-third indirectly from U.S.-made goods. That split describes the modeled scenario, not a measured split of today's price increases.
The direct effect appears faster. Higher costs for U.S.-made goods take longer to move through the supply chain, with the full effect taking about a year in the researchers' estimates.
Source: Mary Amiti, Sebastian Heise and David E. Weinstein, "How Fast Do Tariffs Pass Through into Consumer Prices?", New York Fed Liberty Street Economics, October 6, 2026.