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Trump tariffs spark US government debt sell-off


Published on 2025-04-09 13:00:32 - BBC
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  • Confidence in the US economy is plummeting as investors dumped government debt amid growing concerns over the impact of Donald Trump's tariffs. Governments sell bonds - essentially an IOU - to raise money from financial markets for public spending and in return they pay interest.

The article from MSN discusses how former President Donald Trump's tariffs have led to a significant sell-off of U.S. government debt, particularly by foreign investors. The tariffs, aimed at protecting American industries, have instead increased the cost of imports, contributing to higher inflation and a larger federal deficit. As a result, foreign demand for U.S. Treasury securities has decreased, causing yields to rise and putting pressure on the U.S. government's borrowing costs. This situation has raised concerns about the sustainability of U.S. debt and the potential for further economic instability.

Read the Full BBC Article at:
[ https://www.msn.com/en-us/money/markets/trump-tariffs-spark-us-government-debt-sell-off/ar-AA1CAWFa ]