“The bond market is very tricky. I was watching it. But if you look at it now, it’s beautiful.” These were the words with which President Donald Trump accompanied his surprising decision on April 9 to “pause” the previously announced “reciprocal tariffs” for ninety days. Instead of the spuriously calculated rates on imports from surplus trading partners, most goods, including previously exempt goods compliant with the United States-Mexico-Canada Agreement from Canada and Mexico, would be subject to a 10 percent base rate until further notice.
The notable exception was trade with China, on which Trump raised tariffs to 145 percent. This meant that…
