U.S. manufacturers are confronting a new supply-chain problem: goods remain available in most sectors, but the cost of obtaining them is rising sharply. Energy costs linked to the Iran war, import tariffs imposed by the Trump administration and intense demand for electronic components from AI infrastructure investment are driving the pressure. The U.S. Bureau of Labor Statistics said producer prices for final goods rose 6.6% year over year in August, while prices for intermediate processed goods climbed 11.5% and unprocessed goods rose 12.8%. Retail diesel reached a record $6.23 per gallon on Monday. The Institute for Supply Management's August survey found price increases across more than 10 manufacturing industries, with none reporting declines, while its manufacturing price index has recorded rising costs for 23 consecutive months. Freight costs per shipment rose 16% year over year in August based on Cass Information Systems data, leaving companies paying nearly 20% more per shipment than a year earlier. Electronics remains an exception because data-center expansion has created shortages of memory chips and processors; nearly two-thirds of global electronics manufacturers reported supply constraints or longer lead times in an August Global Electronics Association survey. The association's chief economist, Shawn DuBravac, said some lead times now extend to years and linked the strain to massive AI infrastructure investment. Inflation is also creating political pressure for Trump ahead of November's midterm elections and has contributed to a bond-market selloff, with the 10-year Treasury yield reaching 5% this week, its highest level since 2023. Wall Street is broadly betting that the Federal Reserve will raise interest rates on Wednesday, which would increase corporate financing costs. Uncertainty around the Iran conflict and tariff policy is discouraging large capital expenditures, potentially prolonging supply imbalances and allowing higher factory costs to pass through to consumers.