U.S. tariffs soared in 2025, but something unexpected happened: Americans still imported more goods.
The average U.S. tariff rate jumped from 2.9% in January 2025 to 14.8% in December, according to a new analysis from the Federal Reserve Bank of Dallas. It was the largest increase since the Smoot-Hawley tariffs of 1930.
Economists expected those higher costs to sharply reduce imports. Instead, U.S. imports grew about 4.5% from 2024.
So what happened?
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