Jitters in the US bond market look like the main reason Trump hit pause on higher tariffs
By Alex Dryden, PhD Student in Economics, Department of Economics, SOAS, University of London
Bond markets don’t often make front-page news but the recent sharp sell-off in US Treasuries appears to have been enough to prompt US president Donald Trump to pause his plans for new tariffs.
Traditionally, US Treasuries are seen as one of the world’s safest assets for investors. The United States government has long been regarded as a reliable and responsible borrower. That reputation has allowed the US to borrow at low costs for decades.
But the turbulence triggered by Trump’s “liberation day” tariff announcement caused wild swings in the US government’s borrowing costs.…
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Friday, April 11, 2025