Trump’s Tariff Strategy Backfires as Bond Yields Defy Expectations
Former President Donald Trump’s economic team miscalculated the impact of tariff policies on bond markets, according to analyst Saifedean Ammous. In an April 24 analysis, Ammous revealed how Trump-aligned economists mistakenly believed tariffs could artificially suppress bond yields while boosting equities—a strategy that unraveled as investor confidence wavered.
The brief correlation between falling stock prices and bond yields proved ephemeral. "This is cargo cult economics," Ammous wrote, criticizing the administration’s flawed interpretation of inverse market relationships. The 10-year Treasury yield’s subsequent rebound exposed the policy’s fundamental misunderstanding of financial market dynamics.