Trump temporarily drops tariffs to 10% for most countries

Post by JumpCrisscross » Thu, Apr 10, 2025, 5:38 AM UTC

digianarchist wrote: post #604

magicloop wrote: post #397

"It’s the T-bills wot dun it." That’s my read on why the U.S. just paused the global tariff hike to 10%. From the beginning, I’ve believed the executive branch's real goal was to push down the yield on the 10-year Treasury. Why? Because Uncle Sam has to refinance a mountain of debt this year, and the cost of that depends heavily on Treasury yields — especially the 10-year. That’s the rate that sets the tone for every…

The T-Bill auction today went off without issue and that was before this announcement. https://www.barrons.com/articles/treasury-bond-auction-today...

Post by chneu » Thu, Apr 10, 2025, 5:42 AM UTC

kumarvvr wrote: post #860

arunabha wrote: post #796

I am beginning to wonder if there is an actual plan behind these moves beyond creating uncertainty in trading partner's minds. The stated goal of the administration is to 'reindustrialize' the US by manufacturing more of the goods consumed within the US itself. To get to that goal, tariff barriers are just one part of the story. For tariffs to be effective towards getting to the strategic goal, they need to be couple…

It looks like the administration is filled with people more interested in making a buck for themselves, rather than do what is best for the country. Everyone knows that getting another trump may not be possible for at-least another 10 or so years (I don't mean the dems will win, just that republicans may put forth a saner version of trump just to save the party)

Post by uwagar » Thu, Apr 10, 2025, 5:53 AM UTC

wickedOne wrote: post #363

i wonder why the rest of the world doesn't just come together for a while and stop trading / providing raw materials to the u.s. for let's say a year or so. isn't this all just a huge pile of bluff poker?

Post by humanlity » Thu, Apr 10, 2025, 5:56 AM UTC

Post by disgruntledphd2 » Thu, Apr 10, 2025, 6:22 AM UTC

ajross wrote: post #868

milesvp wrote: post #614

Earlier quoted context omitted.

> Instead of being seen as a safe haven, U.S. debt itself started to look shaky There's also a more basic answer to why US debt got more expensive. There is no such thing as a "trade deficit". You cannot import something without exporting something else. That something else, in almost 100% of the situations, is dollars. What do you do with dollars, if there's nothing you want to buy? You buy debt. So, every trade def…

This is all correct, but it's a first principles explanation that doesn't explain why US bonds, and in particular the 10-year note, spiked today . Yes, eventually excessive tariffs would have that result. They literally hadn't even taken effect yet. So this doesn't explain the bond motion today. Someone was dumping, we don't know who or why. But the answer to that question is a lot (a lot ) more important than people…