According to The Kobeissi Letter, China has enacted a 34% tariff on all US goods as a major retaliatory measure against President Trump, resulting in a $3.5 trillion loss in the S&P 500 over two days. This significant economic move is expected to impact trading strategies as investors react to heightened trade tensions.

According to The Kobeissi Letter, the new tariffs announced by Trump, combined with expected retaliatory measures, are projected to contract GDP by between -3% and -4% if these tariffs persist long-term. Additionally, PCE inflation is anticipated to rise toward 4% in the coming months as price increases take effect. This outlook suggests a cautious approach for traders, particularly in sectors vulnerable to tariff impacts.

According to The Kobeissi Letter, US Commerce Secretary Lutnick announced that US tariffs will increase if a country retaliates against current US tariffs. This statement implies a potential escalation in trade tensions, which could impact global markets and trading strategies. Traders should be vigilant about changes in international trade policies, as these can influence currency exchange rates and commodity prices.

According to The Kobeissi Letter, President Trump announced that if Canada imposes tariffs on the US, he will 'immediately increase' US tariffs by an equivalent amount. This statement is significant for traders as it may impact trade relations and affect the markets, particularly in sectors heavily reliant on US-Canada trade such as automotive and agriculture.