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The rationale behind these actions remains somewhat speculative. While it is conceivable that President Trump aimed to extend a diplomatic olive branch or mitigate consumer dissatisfaction over rising electronic costs, economic indicators, particularly the US Treasury bond market, may have played a pivotal role.
In the week preceding these tariff announcements, significant shifts occurred within the treasury market, with yields rising to levels not seen in decades. Such movements are consequential as they hint at broader financial stability concerns, which could influence the administration’s approach to tariffs.