This HBS BiGS research summary discusses findings from research by Alberto F. Cavallo and Jaya Y. Wen on how recent U.S. trade tariffs have contributed to higher consumer prices. The piece highlights empirical evidence showing that tariffs passed through to domestic prices, affecting goods across sectors, and explores policy implications for inflation, trade policy, and consumer welfare.

Citations

Milligan, Susan. 2025. “U.S. Trade Tariffs Are Increasing Prices.” HBS Institute for Business in Global Society (BiGS), October 24, 2025. Featured research by Alberto F. Cavallo and Jaya Y. Wen. https://www.hbs.edu/bigs/us-trade-tariffs-increasing-prices