SURVEY: TARIFF COSTS TO DRIVE FURTHER U.S. PRICE HIKES IN 2026 U.S. companies are preparing to raise prices again in 2026 as they continue to offset higher tariff costs, according to Morgan Stanley. Analyst Michael Gapen said recent GDP data show firms have already passed through a significant share of tariff-related nonlabor costs, helping restore profitability and reduce recession risks. While companies initially cut hiring and absorbed profit losses, they increasingly raised prices in recent quarters. Survey data suggest further price increases are planned, which could firm inflation but largely avoid layoffs.