The shock waves from US President Trump’s tariff war are spreading throughout the global economy.

The recent developments in the ongoing tariff war initiated by President Trump against China are causing significant upheaval across the global economy, particularly in the US Treasury bond market, which is witnessing turbulence not seen since the early days of the pandemic. On Wednesday, Trump announced a 90-day pause in the implementation of reciprocal tariffs, prompted by concerns from leading financial officials, including Jamie Dimon of JPMorgan, about a potential freeze in the bond market. However, this pause has done little to quell the unrest in the Treasury market, where yields saw notable fluctuations during the week. Yield on the 10-year Treasury bond increased by 0.5 percentage points throughout the week, indicating a growing lack of confidence in the US financial system. Analysts have pointed out that a significant portion of US debt is foreign-owned, and escalating tariffs have raised global concerns about the stability of the US bond market. Responses from financial executives show alarm at the unprecedented nature of the current economic conditions, with Dimon and Larry Fink from BlackRock stating their deep concerns about the possible repercussions on the US and global economies. Moreover, China's response to the latest tariff increases—with its own tariff hikes—underscores the escalating tensions between the two economic powerhouses. Beijing's assertion that the US's tariff strategy violates international trade norms reflects a broader sentiment that the conflict is potentially leading to a fracture in the global trading system. Historically, trade wars have led to deeper economic conflicts, and many economists are drawing parallels to past global market collapses. The article also reflects on the wider implications for countries around the world, particularly those in Southeast Asia, as they brace for possible repercussions in negotiations during this uncertain 90-day pause. There is a pervasive fear that Trump's negotiations will extend beyond tariffs to broader issues of economic alignment on security with the US, which could further complicate the global economic landscape. As countries recalibrate their strategies, the overarching message from government officials and financial leaders is one of caution and preparation for a potentially rocky economic future.