The tariff increases implemented in early 2025 brought renewed attention to the dynamics of U.S. import prices. Tariffs influence import prices by affecting both the prices charged by foreign suppliers and the composition of countries from which the United States imports. In this blog post, we document how import prices charged by foreign suppliers (which exclude tariffs) evolved in 2025 after these tariff changes and identify the mechanisms that shaped these price adjustments. Our findings suggest that while foreign suppliers facing reduced demand did lower prices they charged, this was offset by the effect of U.S. ... (full story)