What the Fed found when it tracked tariffs into housing

New research shows tariffs hit appliances, furniture and construction materials hardest, with no clear jobs payoff to offset higher costs. Electrical appliances, equipment and components absorbed nearly a 3 percent jump in input costs from tariffs between March and December 2025. It was one of the sharpest increases the Federal Reserve Bank of Chicago found in any sector it tracked. That’s according to new research from Chicago Fed staff economists Luojia Hu, Marta Lachowska and Alan Mathew, who studied which industries bore the brunt of tariffs imposed last year. Their finding was that manufactured goods took the hit, and a striking number of those goods flow straight into homes and housing construction. Furniture and related products saw costs climb close to 2.5 percent. Construction itself was up about 1.5 percent. Motor vehicles and parts, textiles and fabricated metal also posted notable increases. On the other end, utilities, insurance, and rental and leasing services were largely insulated. Average 2025 tariff costs, by industry, March–December 2025 Top 20 industries, by tariff costs Notes: The tariff costs are calculated as a percentage of all input costs by industry. The a...