Trump’s Tariff Twist: Liberation Day Looms as Treasury Yields Climb

The scope of the current approach to imposing customs tariffs, set to take effect on April 2, will reportedly narrow, seemingly canceling the tariffs that were scheduled to be applied to certain sectors. Instead, a reciprocal tariff will be imposed targeting a specific group of countries that account for the majority of the United States’ foreign trade volume.

U.S. President Donald Trump announced that this reciprocal tariff, due to be implemented on April 2, will serve as a “liberation day” for the United States. He referred to it as a “reciprocal tariff” aimed at achieving fairness between the U.S. and its trading partners who have imposed customs duties on American imports entering their countries.

Meanwhile, yields on 10-year U.S. Treasury bonds rose to 4.346%, up from the previous day’s close of 4.275%. However, these sovereign bond yields dropped to a session low of 4.295% on Monday, compared to a prior low of 4.349%.