Import prices ticked up slightly in April, driven by higher costs for nonfuel goods even as fuel prices continued to slide, according to data released Friday by the Bureau of Labor Statistics.
The Import Price Index rose 0.1 percent in April, following a 0.4 percent decline in March. Over the past year, import prices were up just 0.1 percent. But excluding fuel, prices for imported goods rose 0.4 percent in April and were up 1.2 percent from a year earlier, suggesting continued resilience in U.S. demand for foreign goods despite the implementation of new tariffs in early April.
The Trump administration’s 10 percent universal tariff and additional targeted duties on over 60 countries went into effect on April 2. The modest rise in import prices, particularly outside the fuel category, suggests that the duties have not significantly deterred U.S. purchases of foreign-made goods.
This suggests fears that tariffs could lead to shortages are likely misplaced.
Prices for capital goods rose 0.6 percent, the largest increase since early 2022, driven by semiconductors and scientific equipment. Consumer goods prices increased 0.3 percent, the first monthly gain since October. Automotive vehicle prices rose 0.2 percent, matching the largest increase since last fall.
In contrast, fuel import prices dropped 2.6 percent, reflecting declines in both petroleum and natural gas prices. Over the past 12 months, import fuel prices have fallen 12.0 percent. President Trump has said that lowering energy costs for Americans will help keep down inflationary pressures. The April imports prices bolster the case for this view.
The increase in nonfuel goods prices, combined with steady import volumes, may indicate that tariff-related costs are being absorbed without major shifts in buying behavior, at least so far.
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