TARIFF TOLL

If additional 25% tariffs are imposed on Canada/Mexico, along with the recently imposed 10% tariff on China, that likely leads to a 0.75 percentage point increase in inflation. If 60% tariffs are imposed on China and full reciprocal tariffs are imposed on all nations, that would probably lead to upwards of a 2-percentage point rise in inflation. In both cases inflation would show up in a matter of months.