The Bureau of Labor and Statistics (BLS) released the December price information on Tuesday 1/13/26 [DATA HERE]. Overall, the topline inflation number is moderate at 2.7% much lower than economists projected.
However, that’s not the only important element. To get an understanding of the impact from tariffs to imported consumer goods, you can look at TABLE-2 [DATA HERE]. As you skim the categories we import the most, electronics, television, sporting goods, apparel, shoes, tools, furniture, etc. what you will note is that the prices are stable with negligible inflation impact noted.
What this means is that tariffs are not creating any upward price pressure on the imported good. The December ’25 imported good prices are stable despite massive tariffs applied in the second and third quarter of 2025. As expected, based on history from 2018/2019, the exporting nation (and company) are absorbing most of the wholesale price increased due to tariffs.
The imported goods are reaching the consumer with no substantively changed price. Some domestically generated goods (food and housing) are still driving the overall inflation number, particularly in the year-over-year calculation, but no substantive price pressure is coming from the import sector.
Export dependent nations are squeezing their own productivity, their governments are subsidizing the critical industries, and the tariffs are being absorbed before the products leave the docks. This is the USA “rust belt” in reverse. The same scenario played out in the USA for decades as domestic manufacturers tried to retain U.S. industry. Now the foreign countries are experiencing their own economic squeeze.
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