Strategist: Tariff Threats Resurface, But Markets Remain Calm This Time

In response to the Trump administration's new round of tariff threats, the initial reaction in the bond market was to sell off U.S. Treasuries, with the 10-year Treasury yield rebounding from its early session 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, similar to the previous tariffs on China. John Madziire, an investment strategist at global asset management giant Vanguard, stated, "The market has calmed down now because this has happened before, and we know what happened afterward. It's like the 'boy who cried wolf' story; people are not taking it too seriously anymore." He added, "The government is not acting recklessly; they have their plans, and there is a limit to how far they can go."