US President Donald Trump’s aggressive trade tariffs have sparked a wave of volatility beyond Wall Street, affecting the US dollar and the Treasury market. The 10-year yield broke past 4.50%, its highest level since February, while gold surged to a new all-time high above $3,200 per ounce.
The turmoil has shaken the narrative of “American exceptionalism,” which has underpinned global confidence in the US economy for decades. A broad trade-weighted measure of the dollar fell to its lowest level since April 2022, down 10% since Trump’s inauguration. Investors remain cautious despite recent encouraging earnings reports from banking giants.
The University of Michigan’s consumer sentiment index plunged to its lowest level since mid-2022, with American consumers growing increasingly pessimistic. Expectations for inflation jumped sharply, with one-year outlooks soaring to 6.7%. The White House remains committed to its hardline tariff policy against China, which has triggered a significant escalation of tensions.
As the economic landscape continues to shift, investors are taking note of the dollar’s decline and the Treasury market’s increased volatility.
Source: https://eu.freep.com/story/money/business/2025/04/12/us-dollar-trump-tariffs-impact/83045224007