Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Trump lashes out at Crockett, renews call for...
Trump goes after Zelenskyy over ‘land swapping’ dispute,...
Democratic whistleblower told FBI that Adam Schiff approved...
MORNING GLORY: Trump meets Putin amid an era...
‘Things need to change’: Senate Democrats sharpen criticism...
Mamdani zings Cuomo in rent-stabilized housing spat during...
Unearthed emails reveal White House nixed Biden visiting...
Strong drilling targets identified next to high-grade gold-copper...
Seymour Lithium Project Achieves Permitting Milestone
Acquisition of Silver Extraction Technology
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Politics

Here’s what Trump is really up to with high-stakes tariff gambit

by admin April 5, 2025
April 5, 2025
Here’s what Trump is really up to with high-stakes tariff gambit
NEWYou can now listen to Fox News articles!

Let us be honest: When most people hear ‘tariffs,’ they think about price hikes and trade wars. But the Trump administration’s latest tariff rollout is not merely a knee-jerk protectionist move—it is part of a far broader strategy.

What is actually in play here is a high-stakes effort to build up leverage and resources to manage America’s debt, reset its industrial base, and renegotiate its standing in the global order.

And it all begins with a problem most people have not been told enough about.

In 2025, the U.S. government must refinance $9.2 trillion in maturing debt. Some $6.5 trillion of that comes due by June. That is not a typo—that is a debt wall the size of a small continent.

Now, here is the math: According to Treasury Secretary Scott Bessent, each basis-point (one one-hundredth of a percent) drop in interest rates saves the government roughly $1 billion per year. Since the announcement of tariffs on April 2, 10-year Treasury yields have fallen from 4.2 percent to 3.9 percent—a 30 basis point drop. If that holds, it translates to $30 billion in savings.

So, keeping yields low is not just sound policy—it is a fiscal necessity.

But we are in a difficult environment. Inflation has not fully cooled, and the Federal Reserve remains wary of cutting rates too quickly. So the question becomes: How does one bring yields down without the Fed’s help?

Here is where the strategy becomes interesting.

By introducing sweeping tariffs, the administration is creating precisely the kind of economic uncertainty that drives investors toward safer assets such as long-term U.S. Treasuries. When markets are spooked, capital exits risk and equity assets (as we see with the stock market collapse) and piles into safe assets, primarily the 10-year U.S. treasury bond. That demand pushes yields lower.

It is a counter-intuitive move, but a calculated one. Some have called it a ‘detox’ for the overheated financial system. And it appears to be working.

However, even cheaper debt does not solve everything. The deficit remains massive—and that is where spending cuts come in.

Backed by the Department of Government Efficiency (DOGE) and Elon Musk, the administration is reportedly targeting $4 billion in daily spending cuts. If their recommendations translate to cuts and get ratified by Congress, that could amount to a trillion dollars off the deficit by late 2025.

At this point, we have two pillars: lower borrowing costs and tighter spending. But there remains a third—and arguably most important—pillar: growth.

Tariffs serve as the ignition switch. By making imports more expensive, they create space for American producers to step back in. The objective is not to punish trade partners—it is to make domestic industry viable again, even if only long enough to rebuild critical capacity.

Yes, prices will rise. But the administration is fully aware of that. In fact, it is front-loading the pain now, hoping to deliver visible job growth and factory activity before the November 2026 midterm elections.

In the meantime, tariffs themselves will generate revenue—an estimated $700 billion or more in the first year. That creates more fiscal room for the administration to enable tax cuts and keep spending on Social Security, Medicaid and other programs.

Where the picture becomes even more interesting is on the geopolitical front.

These tariffs do not exist in a vacuum. They are being deployed alongside a deliberate reshaping of global alliances. The U.S. is quietly distancing itself from NATO, recalibrating ties with Europe, and opening previously frozen diplomatic channels with the Gulf nations and Russia.

Why? Because the post-Cold War trade order no longer serves U.S. interests. It enabled deficits, offshoring, and strategic dependency. Now, tariffs become leverage. Allies who align with U.S. priorities receive relief; others face higher costs.

China, naturally, is the central player. For years, economists have argued that its artificially weak currency and industrial overcapacity have distorted global trade. Tariffs are one way to force a reckoning—and potentially, a revaluation of the yuan.

Other countries will not be spared. Europe could be asked for terms on Ukraine. India may be pressured for deep tariff cuts. Canada and Mexico will likely face demands related to fentanyl and border enforcement.

This is not random. It is trade policy as a means to force countries to the negotiating table.

Domestically, the political logic is equally clear. The sectors most likely to benefit—steel, automobiles, textiles—are concentrated in battleground states. The administration is betting that visible wins in those regions will outweigh short-term pain in sectors dependent on cheap imports.

There are serious risks here. If inflation returns or if the reshoring bet fails, the blowback could be severe. But make no mistake: This is not improvisation. It is disruption by design.

Whether one agrees with it or not, this is one of the most ambitious fiscal and industrial resets in a generation.

The only question that remains is—will it work?

This post appeared first on FOX NEWS

previous post
Here’s what happened during Trump’s 11th week in office
next post
‘FOOD BABE’ VANI HARI: Don’t boo the MAHA movement. Our health and safety are bigger than bureaucrats’ egos

You may also like

JONATHAN TURLEY: Why I’m congratulating the Washington Post

October 26, 2024

After Trump threat, Hamas refuses to release more...

March 6, 2025

Deadly drone wars are already here and the...

June 7, 2025

Ex-Biden chief of staff Ron Klain arrives for...

July 24, 2025

Harris team ‘not aware’ of stolen Trump docs...

September 19, 2024

Trump has not directed administration to declassify Biden...

May 23, 2025

Senate confirms Doug Burgum to lead the Department...

January 31, 2025

Netanyahu shows picture of Bibas family at combat...

February 24, 2025

Top 5 most outrageous ways the government has...

May 3, 2025

AI accusations mar UK election as candidate forced...

July 21, 2024

Recent Posts

  • Trump lashes out at Crockett, renews call for cognitive test
  • Trump goes after Zelenskyy over ‘land swapping’ dispute, lays out ‘feel out meeting’ with Putin
  • Democratic whistleblower told FBI that Adam Schiff approved classified leaks to target Trump
  • MORNING GLORY: Trump meets Putin amid an era done away with John Quincy Adams’ ‘abroad’
  • ‘Things need to change’: Senate Democrats sharpen criticism of Israel as humanitarian concerns grow

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (867)
    • Investing (2,729)
    • Politics (3,369)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.