evidence: In some cases, however, U.S. firms over-shifted the burden of tariffs to final consumers. For example, a new paper by economists Sebastien Houde and Wenjun Wang found that a $1 increase in tariffs on solar panels increased the final price of an installed solar panel system by $1.34. The authors noted "[m]anufacturers and installers thus over-shift the burden of the trade tariffs on U.S. consumer." Over-shifting can occur when domestic firms have "market power," which enables them to raise prices above costs and increase profits. Despite the higher prices, though, the U.S. industry was not better off, as the authors noted "U.S. manufacturers gained little from the anti-dumping policies whereas U.S. installers were largely negatively affected…the solar trade war led to large welfare losses in both countries and substantially slowed the adoption of solar PV." [...] Ultimately, tariffs raise prices for American consumers, but they aren’t the primary culprit for recent surges in inflation. Nonetheless, a repeal of them would be a directional improvement.