Tariffs imposed in spring 2025 raised retail prices on goods made in the USA as well as on imports, according to an updated study from Harvard Business School professor Alberto Cavallo and co-authors, published May 17, 2025.
What the study found
- Cavallo, Paola Llamas and Franco Vazquez tracked more than 330,000 daily prices at four major USA retailers, matched to each product’s origin and tariff code.
- Prices of Chinese goods began rising sharply after the 125% tariff on April 10, 2025.
- Domestically produced goods also rose. The authors noted that “many U.S.-made products rely on imported inputs,” including parts, packaging and raw materials.
- Retailers began raising some prices before tariffs formally took effect.
The team kept updating the paper. A later version, with data through October 2025, found imported goods rose about twice as much as domestic ones.
Why it matters for Made in USA
Buying USA-made does not fully avoid tariff costs when the product contains imported inputs. Products that meet the FTC’s “all or virtually all” standard have the least exposure. Related: the New York Fed’s 2026 study.
FAQ
Who did the study?
Harvard Business School professor Alberto Cavallo, with Paola Llamas and Franco Vazquez, through the HBS Pricing Lab.
What data did they use?
Over 330,000 daily prices from four major USA retailers in the May 2025 version.
Why would USA-made goods cost more?
Many use imported parts, packaging or raw materials that are subject to tariffs.
Source & credit
Source: Alberto Cavallo, Paola Llamas and Franco Vazquez, Harvard Business School Pricing Lab: “Tracking the Short-Run Price Impact of U.S. Tariffs” (HBS working paper page). Additional reporting: Benzinga via Yahoo Finance, May 22, 2025.