Trump Denies Bond Market Forced Tariff Pause

In Brief:

Trump claims his decision to pause tariffs was not due to bond market volatility.

He maintains that the US dollar will strengthen and 10% tariffs remain a "bottom line."

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President Donald Trump addressed speculation on April 12, stating that the decision to suspend tariffs for 90 days was not influenced by recent bond market turbulence. “The bond market is performing well,” he said, downplaying last week’s volatility. “Although it was slightly volatile before, I quickly resolved the issue.”

Trump emphasized his belief that the dollar will rise significantly in value once the public understands his administration’s actions. He dismissed the dollar’s recent decline, calling it unimportant, and reiterated confidence in a stronger greenback moving forward.

He also clarified that a 10% tariff remains the baseline for US trade policy: “For obvious reasons, there may be a few exceptions, but I think 10% is a bottom line.”

His remarks come amid criticism that bond market instability and investor pressure led to the temporary rollback. Trump rejected that narrative: “Many people believe the bond market prompted me to suspend tariffs, but that is not the case.”

The administration’s tariff policy continues to generate volatility across equities, crypto, and global FX markets, even as sentiment recovers from earlier panic.

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