Original article by Cliona O’Dowd
The Australian – Page: 13 & 20 : 11-Apr-25

A dramatic sell-off of US treasuries led to US President Donald Trump announcing a 90-day reprieve of reciprocal tariffs on all countries bar China, rather than the recent sell-off on Wall Street that some have suggested. The sell-off of US treasuries was attributed to global investors such as China and Japan losing faith in the US, and was compounded by hedge funds unwinding what is known as the ‘basis trade’. Despite Trump’s decision to pause his reciprocal tariffs, AMP chief economist Shane Oliver says there could still be a recession in the US, with Oliver saying the significant damage that Trump has done to confidence in the US will be hard to recover.

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