White House has to make tariff retreat

President Donald Trump is highly attuned to stock market trends and consistently monitors its responses to the government's political and economic actions. Unfortunately for him, global markets have continued to tremble at his tariff policy. This occurred even after Trump announced a significant 90-day deferral on the imposition of additional tariffs on all countries — except China. The market's behavior reflects global sentiment regarding a potential trade war with China.

Both direct and indirect information suggest that the US sovereign bond market was the primary reason for the Trump administration's change in position. In one day, the effective interest rate surged to 5 percent. Since such changes should not occur with such chaos, many experts believe that the president's retreat was a direct response to the negative dynamics of the debt market. The last time this happened was during the "Dash for Cash", a crucial moment of financial instability at the onset of the pandemic in March 2020. What has occurred in the debt market has exposed the vulnerability and weakness of the US administration's position.