Food for thought! Yes, higher tariffs can be compensated in different ways other than raising output/product prices.
"... Research published by the Federal Reserve Bank of Boston on Wednesday [8/19/2026] finds that productivity growth accelerated in industries most heavily affected by tariffs—and that this largely offset the higher costs firms in those industries faced.
“Industries in which tariffs induced higher costs in 2025 also experienced greater labor productivity growth, which helped them mitigate those higher costs,” the researchers explain. ..."
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