According to The Kobeissi Letter, if the average tariff rate remains at 29%, inflation is projected to rise to approximately 5.0%-5.5%. UBS supports this estimate, indicating that price increases will likely be partially transferred to consumers. This inflationary pressure may affect trading strategies, particularly in sectors sensitive to price changes. Additionally, Canada is the only other country predicted to experience a significant inflation increase of over 2%, which could influence currency and commodity trading decisions.

According to The Kobeissi Letter, if the average tariff rate remains at 29%, inflation is anticipated to rise to approximately 5.0%-5.5%. UBS corroborates this estimate, highlighting that price increases will likely be partially transferred to consumers. Notably, Canada is identified as the only other country expected to experience a similar inflation increase of over 2%.

According to The Kobeissi Letter, US one-year inflation expectations have risen significantly from approximately 2.7% to 4.3% since the onset of trade war headlines. This indicates a potential doubling from previous lows, suggesting that traders should prepare for increased volatility in the market. Furthermore, the US might experience an average tariff rate exceeding 20%, marking the highest rate in 30 years, which could have profound implications for trade-dependent sectors.