Trump 'Didn't Just Flinch, He Ducked' On Tariff Pause, Says Strategist Jessica Tarlov: Argues Bond Market Forced His Hand Amid Trillions In Market Losses

President Donald Trump announced a 90-day pause on most tariff hikes on Wednesday following a significant market rally that strategists attribute to bond market pressure rather than negotiation success.

What Happened: “He didn’t just flinch, he ducked,” political strategist Jessica Tarlov told Fox News, adding that “there are trillions still lost” despite the policy reversal.

Spencer Hakimian, founder of Tolou Capital Management, expressed rare agreement with Fox News coverage of the situation, writing on X: “I don’t think I have agreed this much in a single day with Fox News in my entire lifetime.”

The pause came after U.S. markets experienced what Bear Traps Report founder Lawrence McDonald called a “historically swift destruction of equity capital,” with approximately $9 trillion wiped out in just six weeks, rivaling the $9 trillion COVID crash and surpassing the $8 trillion Lehman Brothers collapse aftermath.

"He said he was watching the bond market. He had to cave. He didn't just flinch, he ducked." – Fox News

I don't think I have agreed this much in a single day with Fox News in my entire lifetime. 🤝🏽🤝🏽

pic.twitter.com/CDhZLHfLYs

— Spencer Hakimian (@SpencerHakimian) April 10, 2025

Treasury Secretary Scott Bessent, not hawkish advisers Howard Lutnick or Peter Navarro, announced the policy shift on Wednesday, framing it as Trump’s successful negotiation strategy bringing trading partners to the table.

See Also: Former Vice President Mike Pence Calls Trump’s Tariff Moves ‘Misstep,’ Cites Potential Economic Harm To Working Families

Why It Matters: Market experts pointed to a significant bond market rout Tuesday night as the breaking point. The yield on the 10-year Treasury bond spiked to 4.29%, while the 30-year yield at 4.74%.

“The day the bond market won,” McDonald wrote on X.

The day the bond market won. https://t.co/ewp0mUHB2k

— Lawrence McDonald (@Convertbond) April 9, 2025

Fox Business Network’s Charles Gasparino reported that Japanese investors, not China, were unloading U.S. Treasury bonds “in huge quantities” Tuesday night, forcing Trump’s hand. Unlike previous market downturns, this selloff lacked the traditional “flight to quality” bond rally that typically cushions equity losses.

Scoop: Top money managers say it was Japan not China selling last night that upended the bond market and forced Trump's hand into a pause. And yes Trump took the win as so many countries wanted to do deals. Never one thing that causes anything; story developing

— Charles Gasparino (@CGasparino) April 9, 2025

The U.S. has $36 trillion in bonds in circulation—much held by foreign investors—used to finance government operations, including Social Security and military spending.

Read Next:

• Adam Schiff And Elizabeth Warren Call For Investigation Into Possible Insider Trading By Trump Allies As Markets Surge After 90-Day Tariff Pause: ‘It Sure Looks Like Corruption’

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.