President Donald Trump has rejected claims that a significant sell-off in the bond market played a role in his recent choice to postpone strict “reciprocal” tariffs against American trading partners.
“I wasn’t worried,” Trump stated during an interview with Time magazine, where he addressed the market turbulence following his announcement on April 2, dubbed “liberation day.”
In this directive, Trump imposed a 10% tariff on all U.S. imports and unveiled additional tariffs targeting multiple nations, citing trade deficits with these countries. The move raised concerns regarding inflation, the threat of recession, and the potential destabilization of longstanding trade relationships.
Following the announcement, financial markets reacted negatively. Treasury yields initially dropped but soon bounced back sharply. The yield on the 10-year Treasury note surged half a percentage point within a matter of days, marking one of the fastest rises recorded, as investors shifted away from stocks and the U.S. dollar.
In a subsequent move, Trump announced a 90-day suspension of the reciprocal tariffs to facilitate further negotiations, clarifying that this decision was not influenced by market fluctuations.
“No, it wasn’t for that reason,” Trump reiterated in the Time interview published Friday. “I’m doing this until we find the numbers I’m looking for. I’ve had discussions with numerous countries. I don’t even want them to visit.”
Currently, yields have trended lower, with the 10-year yield resting around 4.28%, slightly above its recent low. Trump had previously commented that the bond market seemed to be experiencing anxiety.
“The bond market was getting the yips, but I wasn’t. Because I know what we have,” he clarified. “I understand what we possess, but I’m also aware that we might not maintain it if we endure four more years of gross incompetence. This situation was operating like a free spirit. This was — without a doubt — the most incompetent president in history.”
Despite ongoing discussions about tariffs, Trump expressed that he would regard it as a “total victory” even if the U.S. maintains tariffs as high as 50% one year from now.
Get Your Ticket to Pro LIVE
Join us at the New York Stock Exchange!
Facing uncertain markets? Gain an advantage with Finance Newso Pro LIVE, an exclusive inaugural event at the historic venue.
In today’s rapidly changing financial landscape, expert insights are crucial. As a Finance Newso Pro subscriber, we invite you to participate in our first exclusive, in-person Finance Newso Pro LIVE event at the iconic NYSE on Thursday, June 12.
Engage in interactive Pro clinics led by our experts Carter Worth, Dan Niles, and Dan Ives, along with a special edition of Pro Talks featuring Tom Lee. Participants will also have the chance to network with Finance Newso professionals, talent, and fellow Pro subscribers during an exciting cocktail hour on the legendary trading floor. Remember, tickets are limited!
