...you can see that Trump's reprieve is having an increasingly less positive effect on the markets.
...because no one trust his position any longer. He can backflip so easily, so he could move tariffs back to >10% if he wants to weaponise tariffs again.
...even Japan is looking like backing off from a deal.
...looks like the only deals Trump 2.0 could get now is from minnow countries that depend on US export market (like Vietnam) and the only type of deal he will get is lower tariffs or no tariffs, but that is not what Trump 2.0 really wants. He does not want free trade with zero tariffs from all countries.
...a deal to him is something beyond tariffs, like allowing US to buy TikTok, offering Greenland for sale, provide access to property development opportunities for Trump Org, military purchases etc. It was never about tariffs. Tariffs was just an economic weapon used to extract/extort from other countries.
Who owns the US Treasury market? Foreigners hold 33% of Treasury bonds with Japan and China being the largest holders. China owns ~$760 billion of US government bonds. The country likely holds another $500 billion (difficult to estimate) through EU countries such as Belgium. https://x.com/GlobalMktObserv/status/1911502146618708468
