The cost of borrowing for the US government rose as confidence in the economy waned.

Summary

Trump’s sweeping tariffs triggered a sharp sell-off in U.S. government bonds, driving 10-year yields from 3.9% to 4.5% and eroding investor confidence in Treasuries as a safe haven.

The move coincided with a 104% U.S. tariff on Chinese goods and Beijing’s 84% retaliation, sparking fears of inflation and recession.

Economists warned of rising borrowing costs and pressure on the Fed to intervene. JP Morgan raised U.S. recession odds to 60%.