by William Upton, The National Pulse:
PULSE POINTS:
What Happened: President Trump imposed a 10% blanket global tariff and additional reciprocal tariffs this week, aimed at reshaping both the U.S. and global economies—not just fixing trade deficits.
Who’s Involved: President Donald J. Trump, his economic team (including chief economic advisor Stephen Miran), and U.S. importers/exporters. Global trading partners are watching closely.
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Key Quotes:
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Trump’s team believes “the bond market is a more significant economic problem at the moment than the volatility in the stock market.”
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Miran argues a weaker dollar would “reduce haven demand” and close the trade gap by decreasing overvaluation.
Fallout: The 10-Year Treasury Bond yield fell below 4% after the tariff announcement, suggesting markets see the move as deflationary in the long run. However, the U.S. dollar unexpectedly weakened, raising concerns about rising import prices and consumer inflation.
Economic Shift: The policy pushes toward restoring U.S. industry—steel, autos, manufacturing, and tech—by penalizing foreign-made goods and reducing reliance on market speculation and financial arbitrage.
Significance: If successful, this policy will:
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Reshore U.S. production jobs;
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Encourage foreign direct investment into real industry;
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Lower long-term interest rates to reduce debt costs;
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Shift the economy from financial engineering back to tangible production;
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Realign the value of the U.S. dollar to support exports.
Buried Lede: Trump’s true economic revolution isn’t just tariffs—it’s a bid to de-financialize the U.S. economy, cut Wall Street’s grip, and refocus on real industrial growth. The bond market, not the trade deficit, may be the real target.
IN FULL:
President Donald J. Trump’s imposition earlier this week of a 10 percent blanket global tariff and additional reciprocal tariffs appears intended to achieve far larger and more complex changes to the international and domestic American economies than simply ending foreign trade imbalances.
Trump’s economic team has subtly suggested the impact of the import duties could extend to increasing foreign direct investment in American industries, incentivize a shift in economic investment away from market speculation and into industries focused on producing tangible value, and put downward pressure on interest rates by lowering the 10-Year Treasury Bond yield.
The myriad economic objectives the Trump White House hopes to achieve through its tariff policy are ambitious, to say the least. However, if the policy succeeds, President Trump will have fundamentally moved the United States into a position to dominate the global economy for the foreseeable future.
IT’S ALL ABOUT TREASURY BONDS?
One of the more important secondary policy goals that the Trump White House likely hopes to achieve is a reduction in the 10-year Treasury Bond yield. While most people focus on the Federal Reserve Bank and its interest rate policy, the yield of long-term government bonds impacts interest rates on types of debt held for longer durations, including mortgages, credit cards, and, most importantly, government debt.
The tariffs are anticipated to push the 10-Year Treasury Bond yield lower, meaning the cost of the federal government’s payments servicing the national debt will be reduced. Notably, the inflationary cycle that set in under the Biden government—and was exacerbated by former President Joe Biden’s reckless spending policies—caused the cost to service the debt to increase dramatically and made it difficult for the government to take on any new debt.
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