Donald Trump moved to calm global financial markets on Friday by insisting that the US dollar would remain the world's leading currency, despite signs of investor unease and fresh escalations in the trade war with China.
Speaking aboard Air Force One after a turbulent week for stocks and bonds, Trump said, “We’re the currency of choice. We’re always going to be... I think the dollar is tremendous.” His remarks came after the dollar dropped to its lowest level against the euro in more than three years, adding to concerns about the US economy’s stability under his tariff policy.
Earlier in the week, Trump had announced sweeping tariffs on several trade partners, only to roll back some of them days later while raising levies on Chinese imports. The White House described this as a “90-day pause,” with Trump remaining “optimistic” about a potential deal with China, while press secretary Karoline Leavitt warned that the president would respond strongly to any economic retaliation.
Beijing responded by imposing 125 percent tariffs on US goods, nearly matching the 145 percent rate the US applied to Chinese products. China’s finance ministry said there would be no further increases, acknowledging that imports were already close to impossible at current levels. Chinese President Xi Jinping, speaking during talks with Spanish Prime Minister Pedro Sánchez, criticised what he called “unilateral bullying practices” and said China was not afraid of confrontation.
As bond yields surged and stocks swung wildly, investors fled traditional safe havens like US Treasurys — a highly unusual move. The 10-year Treasury yield jumped from 4.01% to 4.58% before settling around 4.50%, a dramatic shift that sparked fears about the United States’ status as a financial anchor. “The fear is the US is losing its standing as the safe haven,” said fund manager George Cipolloni.
Trump acknowledged the influence of bond markets on his decision to ease tariff measures, admitting that investors had become “a little queasy.” Despite his attempts to downplay the sell-off, experts warned of broader implications. Analyst Ipek Ozkardeskaya said the situation no longer made economic sense, adding that China was prepared to go “as far as needed.”
Still, Trump remained bullish. “The bond market’s going good,” he told reporters. “It had a little moment, but I solved that problem very quickly. I’m very good at this.”
Speaking aboard Air Force One after a turbulent week for stocks and bonds, Trump said, “We’re the currency of choice. We’re always going to be... I think the dollar is tremendous.” His remarks came after the dollar dropped to its lowest level against the euro in more than three years, adding to concerns about the US economy’s stability under his tariff policy.
Earlier in the week, Trump had announced sweeping tariffs on several trade partners, only to roll back some of them days later while raising levies on Chinese imports. The White House described this as a “90-day pause,” with Trump remaining “optimistic” about a potential deal with China, while press secretary Karoline Leavitt warned that the president would respond strongly to any economic retaliation.
Beijing responded by imposing 125 percent tariffs on US goods, nearly matching the 145 percent rate the US applied to Chinese products. China’s finance ministry said there would be no further increases, acknowledging that imports were already close to impossible at current levels. Chinese President Xi Jinping, speaking during talks with Spanish Prime Minister Pedro Sánchez, criticised what he called “unilateral bullying practices” and said China was not afraid of confrontation.
As bond yields surged and stocks swung wildly, investors fled traditional safe havens like US Treasurys — a highly unusual move. The 10-year Treasury yield jumped from 4.01% to 4.58% before settling around 4.50%, a dramatic shift that sparked fears about the United States’ status as a financial anchor. “The fear is the US is losing its standing as the safe haven,” said fund manager George Cipolloni.
Trump acknowledged the influence of bond markets on his decision to ease tariff measures, admitting that investors had become “a little queasy.” Despite his attempts to downplay the sell-off, experts warned of broader implications. Analyst Ipek Ozkardeskaya said the situation no longer made economic sense, adding that China was prepared to go “as far as needed.”
Still, Trump remained bullish. “The bond market’s going good,” he told reporters. “It had a little moment, but I solved that problem very quickly. I’m very good at this.”
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