Overview

• President Trump has paused further tariff increases for 90 days after severe turbulence in U.S. financial markets, including a historic sell-off in government bonds.
• Yields on U.S. Treasuries have surged to levels not seen in years, signaling diminished confidence in government debt as a safe haven asset.
• The U.S. dollar has weakened significantly, with global investors shifting capital to other currencies and assets, marking a rare instance of capital flight from America.
• Economic analysts warn of long-term risks, including higher borrowing costs, potential recession, and a lasting erosion of trust in U.S. fiscal management.
• Despite the tariff pause, uncertainty remains high, with investors skeptical about the administration's erratic trade policies and their broader economic implications.