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

According to the Fed's newly released "Beige Book" report, economic activity expanded across the United States at a modest to moderate pace between September and mid-October.

The report said that U.S. 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," said the Fed.

However, the central bank noted that tariffs on U.S. 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 midwest region of the United States, said that retailers across numerous sectors expected consumers to see the impact of U.S. tariffs on imports by early 2019.

The Boston Fed, which overlooks the northeast part of the nation, noted the price of new cars was also expected to increase "significantly" to cover the burden of recently implemented tariffs.

The Dallas Fed, which supervises the State of Texas, northern Louisiana and southern New Mexico, noted that roughly 60 percent of manufacturers said the tariffs announced or implemented this year have resulted in increased input costs.

Federal Reserve Banks of other districts also reported that local businesses expressed their concerns over tariffs.

Early this year, the U.S. has imposed tariffs on imports from multiple trading partners, triggering concerns about higher prices among the market participants.

The Fed confirmed that prices continued to rise, but saying prices were "growing at a modest-to-moderate pace in all districts."

Last week, the Fed released the minutes of a policy meeting held in late September, which signaled that the central bank would continue to raise interest rates gradually in order to prevent economic overheating.

On Sept. 26, the Fed raised the target range for the federal funds rate to 2-2.25 percent. It is largely expected to hike once more before year-end.