To The Moon

Trump’s Tariffs: Inflation Fears and Yield Pressure Donald Trump’s recent tariff moves—25% on imports from Canada and Mexico, plus an additional 10% on Chinese goods—have jolted global markets. Tariffs of this magnitude, targeting major U.S. trading partners, threaten to disrupt supply chains and raise the cost of imported goods. Economists estimate that a 10% tariff could shave 0.3% off eurozone growth annually unless offset by currency depreciation, while a 20% tariff might halve the region’s projected 1% growth for 2025. In the U.S., the impact could be a GDP drop of 1.3–1.5% in the first two years, though a stronger trade balance might mitigate this over time. The immediate concern for bond markets is inflation. Higher import costs could fuel price pressures, reducing the Federal Reser