U.S. Treasury Yields Rise Amid Tariff Speculation

NEW YORK, N.Y. — U.S. Treasury yields increased on Monday as investors awaited clarity regarding President Donald Trump‘s impending tariffs. The benchmark yield rose nearly 2 basis points to 4.244%, while the yield on 10-year notes climbed over 3 basis points to settle at 4.028%.

The rise in yields comes in anticipation of 25% duties on imports from Canada and Mexico, which are scheduled to take effect on Tuesday. Trump indicated on Fox News that these tariffs are ‘fluid,’ suggesting they could be lower than initially proposed. He confirmed, however, that the 10% duty on Chinese imports is ‘set.’

Market concerns regarding the economic impact of these tariffs have been amplified by comments from Warren Buffett. The Berkshire Hathaway chairman described tariffs as ‘an act of war, to some degree’ and expressed concerns that they could lead to inflation and negatively affect consumers. ‘Over time, they are a tax on goods. The Tooth Fairy doesn’t pay ‘em!’ Buffett stated. He emphasized the importance of considering the economic consequences of such measures.

Additionally, investors are focused on forthcoming reports regarding business activity in the manufacturing sector. The S&P Global Manufacturing PMI report and ISM Manufacturing PMI report are set to be released on Monday at 10 a.m. ET, with readings above 50 signaling growth and readings below indicating contraction.

In a related discussion, JPMorgan Chase CEO Jamie Dimon criticized the U.S. government, describing it as ‘inefficient’ and in dire need of reform. During an interview with CNBC’s Leslie Picker, Dimon addressed the Trump administration’s moves to reduce federal employees and dismantle agencies, including the Consumer Financial Protection Bureau.

‘The government is inefficient, not very competent, and needs a lot of work,’ Dimon stated. He supported the initiative led by Elon Musk‘s advisory group, the Department of Government Efficiency, albeit without a definitive endorsement. He remarked, ‘It’s not just waste and fraud; it’s about outcomes.’

As for the gold card proposal for U.S. residency, which would require a $5 million investment, experts highlight that it represents a significant opportunity despite its high cost. This new visa aims to attract wealth investors by providing permanent residency and a path to citizenship. Legal professionals expect considerable interest from high-net-worth individuals looking to secure U.S. residence.

‘The U.S. remains the undisputed leader in private wealth creation,’ said Dominic Volek, head of private clients at Henley & Partners. He noted that the gold card visa program could become incredibly popular among the affluent class, which could potentially lead to thousands of applicants, although far fewer than suggested by Trump’s million-card assertion.

Currently, approximately 135,000 of the world’s wealthiest individuals are projected to find residence opportunities appealing. Historically, U.S. residency has been perceived less favorably by the global wealthy due to tax regulations on worldwide income, but the proposed gold card could create a unique tax situation.

Experts argue that if the program is implemented correctly, it may pave the way for changes in how wealthy establishments are taxed in the U.S., further enticing high-net-worth individuals to consider the opportunity.