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Trump Urges NATO to Cut Russian Oil Imports, Pushes for Tariffs on China to End Ukraine War

President Donald Trump has called on NATO allies to immediately stop purchasing Russian oil, warning that continued imports undermine the alliance’s leverage over Moscow. In a post on his social media platform, Trump described the practice as “shocking” and claimed it weakens NATO’s bargaining power in efforts to end the war in Ukraine. Trump proposed that all NATO members not only ban Russian oil but also impose tariffs of 50% to 100% on Chinese goods, arguing that Beijing’s economic ties with Moscow give it significant influence over Russia’s actions. He suggested these measures remain in place until Russia halts its military operations in Ukraine. The appeal comes amid heightened tensions, following recent Russian drone incursions into NATO member Poland, and as U.S. lawmakers push for tougher sanctions. While some European nations, including Turkey, Hungary, and Slovakia, continue to import Russian oil, Trump insists a united economic front could bring the conflict to a swift cl...
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Fiscal Challenges Ahead: U.S. Bonds Face Uncertainty Under Trump’s New Term

 

As Donald Trump begins his new term as U.S. President, the fiscal landscape presents significant challenges that could impact the nation’s bond market. The prospect of rising government debt levels has already influenced investor sentiment, pushing U.S. government bond yields higher.

Trump’s trade and tax policies are expected to reignite inflation, exacerbating the fiscal strain. This scenario has led to concerns among investors, often referred to as “bond vigilantes,” who may dump government debt over worries about increasing deficits. The benchmark 10-year Treasury yield has already risen to 4.479% in response to these concerns.

A critical hurdle for the new administration will be the reinstatement of the federal debt ceiling on January 2, 2025. This ceiling, which was suspended in 2023, must be approved by a majority of lawmakers. Past disputes over the debt limit have brought the country close to default, affecting its credit rating.

Analysts predict volatility in the bond market around these negotiations, even if a default is avoided. Measures such as Treasury puts or credit default swaps might be used to hedge against this volatility. The Treasury Department may need to employ extraordinary measures to fund the government until the so-called X date, when it can no longer meet all its obligations.

In summary, Trump’s presidency is expected to bring fiscal challenges that could strain the U.S. bond market, with rising deficits and potential volatility as key concerns for investors.


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