According to The Kobeissi Letter, tariffs have historically led to price increases being passed on to consumers, which could fuel inflation. During the Trump Trade War 1.0, PCE prices in nine tariff-impacted categories rose by 4%, while non-tariff categories saw a 2% decline. This historical data suggests that inflation may run hot in Q2 2025, influencing trading decisions in sectors affected by tariffs.

According to @GOPMajorityWhip, the House GOP is pushing back against economic policies by the Biden administration and Congressional Democrats that they claim have negatively impacted American consumers. This development is important for traders as it may signal potential shifts in fiscal policies that could influence market conditions and consumer spending patterns.