Financial Experts Are Trashing U.S. President Trump's Tariff Policy, While Some Analysts Emphasize Bitcoin Is Showing Its Unique Economic Properties in a Time of Global Uncertainty.

Financial experts are trashing U.S. President Trump's tariff policy, while some analysts emphasize that Bitcoin is showing its unique economic properties in a time of global uncertainty.

Financial experts are trashing U.S. President Trump's tariff policy, while some analysts highlight that Bitcoin (BTC) is demonstrating its unique economic properties in a time of global uncertainty.

Trump’s decision to take a 90-day pause on reciprocal tariff hikes and return to a 10 percent baseline for most countries (except China) has exposed the vulnerabilities of the U.S. bond market, critics say.

Economist and Bitcoin Standard author Saifedean Ammous pointed out that Trump's decision to cancel the increased tariffs was a reaction to rising bond yields, suggesting the forced nature of the administration's move.

"Trump fought the bond market and the bond market won," wrote Ammous on April 23 on social media X. "The gambit seemed to work for the first day, and the huge crash in the stock market was presented as a small price to pay for fiscal sustainability."

"But then the bonds began to crash, and it became clear how disastrous the tariffs were, and how wrong it was to expect that deliberately crashing the stock market would boost the bond market."

Treasury bond yields surge after tariff maneuvering

After Trump's tariff announcement, 10-year Treasury bond yields jumped from less than 4% to 4.5% amid a sell-off driven by inflation and recession fears.

1-week chart of 10-year U.S. Treasury bond yields. Source: TradingView

"The rise in yield was the exact opposite of what the administration wants, and pulling back on tariffs 12 hours after they went into effect will be absolutely devastating to Trump's negotiating position," Ammus noted.

"Also, all the talk of China caving to Trump's threat sounds frankly ridiculous, given that Trump couldn't keep his tariffs in place for two days, and the Chinese have shown absolutely no willingness to come to the table and make a deal."

Trade wars revive the need for a Bitcoin standard

The situation has now brought back long-standing proposals to back the U.S. dollar with Bitcoin.

Ammous said the U.S. should continue to buy BTC until the government owns enough to fully back the dollar mass, eventually moving to a Bitcoin standard: "Continue to buy Bitcoin until the value of Bitcoin held by the U.S. government is sufficient to back the entire U.S. dollar mass, then move to a Bitcoin standard in which dollars are exchangeable for Bitcoin, and let the right unfold naturally."

Historically, the dollar was backed by gold and was exchangeable for a fixed amount of the precious metal until 1933, when President Franklin D. Roosevelt suspended gold convertibility in response to the Great Depression.

In 1971, President Richard Nixon halted the convertibility of the dollar into gold in an effort to protect U.S. gold reserves and stabilize the economy, beginning the fiat currency system that exists today.

Bitcoin's fixed supply, which is hard-coded into its tokenomics, is gradually making it a preferred alternative to gold.