On Tuesday, U.S. fiscal earnings changed little on Tuesday as investors continued to assess the consequences of President Donald Trump’s tariff letters threatening the huge tariffs in multiple countries, including major allies.
Benchmark 10-year rate of return At 4.407%, up 1 basis point, while 30-year bond yield Stay unchanged with a 4.93% attitude. this 2 years of fiscal revenue It was also flat at 3.903%.
One basis point is equal to 0.01%. The rate of return and price are inversely related.
President Donald Trump announced on Monday that starting from August 1, new tariffs will take effect on imports from 14 countries.
In a series of social media posts, he published screenshots that were published to leaders in Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos and Myanmar, outlining new trade measures.
The second batch of letters later targeted Bosnia and Herzegovina, Tunisia, Indonesia, Bangladesh, Serbia, Cambodia and Thailand.
Japan will face a hike with a “reciprocal” tariff rate first announced by Trump in April. The White House said Japanese goods entering the U.S. will be subject to 25% tariffs starting August 1, up from 24% previously announced.
Trump said late Monday that the new August 1 tariff deadline was “not 100% business”, but he changed his tone a day later. Tuesday, President Posted on Truth Social The date to August 1 will not be changed or expanded. Later that day, Trump also announced a steep 50% tariff on copper imports.
That being said, Trump said he was willing to negotiate more. David Kohl, chief economist at Julius Baer, said the threat of higher tariffs is to create a headwind for U.S. investment sentiment and increase uncertainty about U.S. inflation.
Cole wrote in a note that the continued high tariff threat has exacerbated the risk of stagnation in the United States and put pressure on Europe to stimulate domestic demand to offset international trade.
