Trump insists bond market tumult didn’t influence tariff pause: ‘I wasn’t worried’
President Donald Trump recently addressed concerns regarding a potential bond market sell-off influencing his decision to postpone aggressive reciprocal tariffs against U.S. trading partners. In a Time magazine interview, Trump dismissed the notion that he was worried about the financial market tumult that followed his “Liberation Day” announcement on April 2.
The announcement included a 10% tariff on all U.S. imports and a list of tariffs on numerous other nations based on trade deficits. This move sparked fears of inflation, recession, and trade agreement disruptions, causing market turmoil. Treasury yields initially dropped but quickly rebounded, with the 10-year yield jumping half a percentage point in a matter of days, prompting investors to sell off stocks and the U.S. dollar.
Despite the market reaction, Trump decided to delay the reciprocal tariffs for 90 days to allow for negotiation, insisting that the decision was not influenced by the market turmoil. He emphasized that he was focused on achieving the desired outcomes in trade negotiations with other countries.
In the interview, Trump expressed confidence in the U.S. economy and its potential for growth. He mentioned that the bond market had experienced some volatility but remained unfazed by it, attributing the market reaction to what he described as the “most incompetent president in history.”
As negotiations continue, Trump indicated that he would view it as a “total victory” even if the U.S. maintained tariffs as high as 50% a year from now. This stance reflects his commitment to reshaping trade policies to benefit American interests.
In conclusion, Trump’s decision to delay reciprocal tariffs and his unwavering confidence in the U.S. economy demonstrate his determination to prioritize national interests in trade negotiations. The ongoing discussions with trading partners will continue to shape the future of U.S. trade policy.
