Figure 1

No evidence that foreign exporters are broadly absorbing US tariffs

Import Price Index, all imports excluding fuels. Index Dec 2001 = 100.

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Source: U.S. Bureau of Labor Statistics.
Note: The index assuming full foreign absorption estimates the price reductions that foreign exporters would need to deploy to offset tariffs paid by U.S. importers. Calculated using Penn Wharton Budget Model monthly average effective tariff rates.