Tariffs, bond yields, and the global impact: The recent months have witnessed heightened trade tensions, unsettling financial markets that had only just begun to regain composure. President Donald Trump’s latest salvo—a proposed 50% tariff on European Union goods and a 25% levy on smartphones unless companies like Apple and Samsung shift production to the US—has shaken investor confidence and sent ripples across asset classes.
The bond market has reacted sharply. US 10-year Treasury yields have climbed above 4.6%, while 30-year yields have breached 5.1%—their highest levels since November 2023. This sudden surge in yields carries far-reaching consequences not just for the US economy, but for global financial stability.
