Thursday, April 10, 2025

Why Trump Blinked on Reciprocal Tariffs


From ‘Be Cool!’ to ‘Getting Yippy’: Inside Trump’s Reversal on Tariffs
https://www.nytimes.com/2025/04/09/us/politics/trump-tariff-pause-be-cool.html
Economic turmoil, particularly a rapid rise in government bond yields, caused President Trump to reverse course on the steep levies.
 
How Trump was forced to bow to reality of markets meltdown
https://www.telegraph.co.uk/business/2025/04/09/fears-market-armageddon-forced-trump-truss-climbdown/
A Liz Truss-style fire sale in the bond markets forced the White House to pause tariffs.
 
The Dollar and the Bond Market’s Ominous Message for Trump
https://www.wsj.com/economy/trade/the-dollar-and-the-bond-markets-ominous-message-for-trump-028e8765

Bully or Chicken — Playing Trump with Game Theory
https://www.bloomberg.com/opinion/newsletters/2025-04-10/bully-or-chicken-playing-trump-with-game-theory
‘Yippy’ bond markets force a presidential first blink, while China looks determined to stand up for itself.

Sell-Off in U.S. Bonds and Dollar Raises Questions About ‘Safe Haven’ Status
https://www.nytimes.com/2025/04/09/business/economy/bonds-tariffs-safe-haven.html
As the fallout from President Trump’s global trade war spreads, investors are fleeing what is typically seen as the safest corner.



Related:
Trade Wars Are Easy to Lose
https://www.foreignaffairs.com/united-states/trade-wars-are-easy-lose
Beijing Has Escalation Dominance in the U.S.-China Tariff Fight.
 
Underestimating China
https://www.foreignaffairs.com/china/underestimating-china
Why America Needs a New Strategy of Allied Scale to Offset Beijing’s Enduring Advantages.