• American stock markets lost about 1.5 trillion dollars After President Trump announced the duties of punitive import, but the administration is more interested in reducing borrowing costs to avoid a debt debt ring.

When President Donald Trump raised a spreadsheet that lists all the punitive customs duties that he planned to tax on the rest of the world late on Wednesday, investors had one thing – for exits.

Futures on S&P 500 and Nasdak 100 decreased sharply as soon as the markets learned that starting next week, the United States will strike goods from China with an additional duty by 34 %, not to mention 20 % on those from the European Union and 24 % on those from Japan. Former Economic expert at Harvard University Lawrence of Samars calculated Nearly $ 1.5 trillion of market value has been eliminated within about an hour.

Despite its ability to track the future contracts for shares that were sold at this moment, administration officials rejected a movement after that, and instead, stock prices were thrown on Deepseek, an open source AI model from China that punched technical assessments in January.

“What I would like to refer to is that Nasdak reached its climax on the Day of Dembassic,” Treasury Secretary Scott PayetHe said Bloomberg TV on Wednesday. “This is itMag-7 problemIt is not a Maga problem. “

The head of the Saksu Bank Global Investment Strategy, who follows the homosexuality, says in everything from Amazon to Nike To a height once in the century, the average active import fee is raised by about 19 degrees Celsius.

“In what President Donald Trump described as a” liberation day “for the American economy, April 2 witnessed the disclosure of the widest of the most aggressive definitions imposed by the United States for more than 100 years,”booksYaqoub Folkurcron on Thursday. “Markets around the world have declined in response.”

Debt reinstalization tsunami

Bess’s reaction may not be simply trying to avoid uncomfortable questions about the S&P 500 index of up to six months of its lowest level. There are other reasons that make the White House want to transform voters from the stock markets.

The former hedge fund manager said he wanted New Litmus test In order for the health of the American economy to be the 10-year normative treasury bonds, through which the largest credit market-including auto loans and home mortgages-is widely priced.

Decrease fruitThe more affordable it becomes the money borrowed for both Americans and uncle. This is the key, as Bessant inherits from his predecessor, a crisis that the veterans of Wall Street, including Stanley Drukinmeleer I tragicly exploded.

Biden Administration decision to fill a lot of its debts using notes with a short -term entitlement such as Treasury, which now means that there is a Tsunami from debt The BESSENT management needs to be funded this year without breaking the bank in this process.

Preventing the episode of the American Debt Market episode

Benefit payments on national debts have already pushed the annual defense spending, as it struck 1 trillion dollars last year. There can be a significant height of the current level in the US fishing in the destruction circle, as it must borrow more and more money at increasing rates just to serve its debts.

Trump and Pesint have made clear that they aim to prevent this evil circle by paying the costs of borrowing on long bonds, which is the part of the revenue curve of the Federal Reserve only. While this may harm stocks in the short term, The alternative can be much worse.

The billionaire investor Ray Dalio, founder of the total hedge fund, gave Pedguter, politics makers Three years at most To fix the increasing American debt problem before they risk seeing buyers the next time they are trying to issue sovereign bonds.

To date, it seems that the Bessent plan is working. The markets were exposed to the comprehensive Trump tariff. The possibility of increasing stagnation.

Besides buying gold, investors accumulated US debt, which pushed 10 years from 4.80 % to 4.08 % in less than three months.

This story was originally shown on Fortune.com

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2025-04-03 12:28:00