Tariffs will raise prices. But the climate crisis is the real inflation risk | Mark Blyth and Nicolò Fraccaroli

Inflation is fundamentally a tax on consumption, particularly disadvantaging the poor who spend more of their income. President Trump’s tariffs could drive up prices due to their impact on intermediate goods and producers’ inability to absorb the costs. While inflation might stabilize if tariffs vanish, deeper structural issues like climate change and failing decarbonization efforts will persist, causing long-term price increases in insurance markets, food supplies, and global supply chains. Policymakers should address these underlying forces to avoid inflationary pressures from resuming.