Abstract This paper analyzes the hitherto unexplored relation between expected exchange rates and import prices of durable goods. The distinguishing feature of durable goods is their asset-like quality, implying that their current and future sales are substitutable: durability induces intertemporal substitution. Hence, expected exchange rates affect the current price of imported durables. Although the sign of the effect cannot be determined by theory only, the evidence shows that an expected appreciation raises the current import price of durables.