Strategist: Tariff threats resurface, but the market is relatively calm this time
ChainCatcher news, in the face of the Trump administration's new round of tariff threats, the initial reaction of the bond market was to sell U.S. Treasuries, with the 10-year Treasury yield rebounding from an early low. However, the volatility was not significant. Clearly, investors generally expect that the aggressive proposal to impose a 50% tariff on EU imports will ultimately be significantly weakened in negotiations, just like the previous tariffs on China.
John Madziire, a strategist at global asset management giant Vanguard, stated, "The market has calmed down now because this has happened before, and we know what happened later. It's like the story of 'The Boy Who Cried Wolf'; people are taking it less seriously." He added, "The government is not acting recklessly; they have their own plans, and there are limits to how far they can go."