The News
Asian, US, and European stocks fell, the dollar dropped, and US Treasury yields rose on concern over the global economy’s prospects after a downgrade of American debt and renewed tariff warnings from Washington.
Markets had enjoyed a reprieve after US President Donald Trump suspended his “Liberation Day” duties and reached trade deals. But over the weekend, Trump told reporters his administration would impose new levies in the coming weeks and his Treasury secretary warned they could soon return to sky-high levels.
Of increasing concern, however, is the prospect of surging US debt if Trump’s tax-cutting plans — which passed a key congressional hurdle over the weekend — are realized: As Bloomberg put it, a “mini ‘sell America’ trade” is being revived.
