US President Donald Trump speaks throughout a bilateral assembly with Prime Minister of Norway Jonas Gahr Retailer within the Oval Workplace of the White Home in Washington, DC, on April 24, 2025.
Saul Loeb | Afp | Getty Pictures
President Donald Trump denied {that a} sturdy bond market sell-off influenced his determination earlier this month to carry off on aggressive “reciprocal” tariffs towards U.S. buying and selling companions.
“I wasn’t nervous,” Trump mentioned in a Time journal interview throughout which he was requested about monetary market tumult after his April 2 “Liberation Day” announcement.
Within the decree, Trump slapped 10% across-the-board duties towards all U.S. imports and launched a listing of tariffs towards dozens of different nations. The additional levies had been based mostly on commerce deficits the U.S. had towards the respective international locations and raised fears about inflation, a possible recession and disruption of long-held commerce agreements.
Markets recoiled following the discharge. Treasury yields initially headed decrease however shortly snapped increased. The ten-year yield rose half a share level in just some days, certainly one of its quickest strikes ever, as traders additionally ditched shares and the U.S. greenback.
In the end, Trump issued a 90-day keep on the reciprocal tariffs to permit time for negotiation. However he mentioned it wasn’t due to the market tumult.
“No, it wasn’t for that cause,” Trump informed Time within the interview from Tuesday that was printed Friday. “I am doing that till we give you the numbers that I wish to give you. I’ve met with a whole lot of international locations. I’ve talked on the phone. I do not even need them to come back in.”
Yields have since moved decrease, with the 10-year most lately round 4.28%, a few quarter share level increased than its current low. Trump had mentioned when he made the choice to carry off that the bond market had gotten the “yips.”
“The bond market was getting the yips, however I wasn’t. As a result of I do know what now we have,” he mentioned. “I do know what now we have, however I additionally know we can’t have it for lengthy if we allowed 4 extra years of the gross incompetence. This factor was simply working — it was working as a free spirit. This was — this was probably the most incompetent president in historical past.”
Although negotiations over tariffs are ongoing, Trump added that he would take into account it a “complete victory” even when the U.S. has levies as excessive as 50% nonetheless in place a yr from now.
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