Mitigating tariffs via USMCA may have limited 2025 price increases

Enrique Martínez García () and Ronald Mau

Dallas Fed Economics from Federal Reserve Bank of Dallas

Abstract: 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.

Date: 2026-08-18
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