Mitigating tariffs via USMCA may have limited 2025 price increases
· dallasfed.org
Higher tariffs do not automatically show up one-for-one in consumer prices. Price effects depend on how firms respond. Foreign exporters may cut pre-tariff prices to preserve access to the U.S. market, while domestic importers or retailers may absorb part of the increase with lower margins.
Mitigating tariffs via USMCA may have limited 2025 price increases
Enrique Martínez García and Ron Mau
Higher tariffs do not automatically show up one-for-o...