Trump is destroying our country. Sort of like Hitler did to Germany. How many years did it take Germany to recover from him?
The percentage of US debt owned by foreign entities dropped from a peak of 34.4% in early 2015 to roughly 25.2% by mid-2025.
For decades, the U.S. financial system has been regarded as one of the most stable and powerful in the world. Now, something unprecedented may be happening as a result of President Trump's tariffs: Investors everywhere may be losing their faith in the United States. Or punishing us. Our American corporations pushed for global trade. We/THEY benefited from it. America benefited from it. Now WE want to stop trading with the rest of the world? Fine. So all those countries are quietly looking for new partners.
Stocks, U.S. government bonds, and the dollar are all taking a hit at the same time
Just on Monday, the Dow Jones Industrial Average fell nearly 1,000 points, or more than 2%, while
a key metric of the dollar against a basket of major currencies fell to a three-year low.
The most pessimistic fear is that the sell-offs mean that
investors around the world are losing trust in the U.S. as a result of Trump's unpredictable policies — and they are therefore cutting their investments across the board.
If true, it would represent a seismic change in the global financial system, in which the U.S. is no longer considered as a haven.
And it matters in the U.S. as well. Foreign investors' confidence in the United States is critical — not only to the trillions of dollars tied up in this country's financial markets, but to the American way of life.
What is happening in the markets?
As soon as Trump
unveiled his tariffs on April 2, stock markets plummeted all over the world. The Dow has recovered somewhat after Trump
paused many of his tariffs, but it's still down more than 7% since his initial announcement.
U.S. Treasury bonds are widely considered among the safest holdings in the world. And the dollar is the world's biggest currency
So why are stocks, bonds and the dollar all falling at the same time?
One explanation is that it has to do with sophisticated investors, both foreign and domestic, adjusting their portfolios based on tariff news that
stunned most people in financial markets.
After all, many investors had believed Trump was just using tariffs as negotiating ploy. Instead, his tariffs are so sweeping they threaten to kickstart a new global economic order.
But there's another explanation for why all three markets fell: What if the sell-off represented the moment the U.S. lost the trust of global investors — and now means that U.S. bonds and the dollar are no longer considered to be among the world's safest investments?
After all, in less than 100 days, Trump has also unsettled investors with chaotic firings across the federal workforce,
pushed to acquire Greenland, expressed a desire to "take back"
the Panama Canal, and said Canada should
become the 51st state.
And now Trump is
attacking Federal Reserve Chair Jerome Powell and calling for his "termination," which is spooking investors even more.
Taken all together, it's creating what markets hate most: Unpredictability. — and Wall Street fears it's making foreign investors lose confidence in the U.S. as a result.
Why are foreign investors so critical?
For decades, foreign investors — from major global central banks to mom-and-pop funds — have placed some of their cash in bonds sold by the U.S. government because they are seen as havens.
All that money helps the U.S. continue to spend money, even when the country is facing
ballooning deficits. It also contributes to a stronger dollar, since foreign investors need to buy dollars so they can buy U.S. bonds.
Because there were so many investors willing to buy bonds from Uncle Sam, the U.S. didn’t have to pay out high interest rates. It's effectively like having a low-interest credit card: It gives the country more confidence to spend money, because it can afford to finance its purchases.
What happens if foreign investors stop buying?
The effects on the U.S. finances could be dire.
Back to the credit card analogy: Say you have long relied on a low-interest credit card to pay your bills. But suddenly that credit card company decides you are too financially risky and stops lending you money unless you are willing to pay much higher interest rates. That may not bankrupt you, but financially, it would be very painful.
That's what happens when foreign bond buyers get hesitant: It drives up the interest rates the U.S. must pay to entice them to buy — and makes borrowing much more expensive, making it harder to finance the country's spending.
An even bigger fear is that foreign investors could deliberately decide to stop buying U.S. bonds as a way to hurt the nation financially. And there's no country that investors worry about more than China.
Despite the longstanding tensions between the U.S. and China, one thing has held steady: China has continued buying U.S. government bonds. It now owns over $750 billion worth
It's a mutually beneficial relationship. It allows the U.S. to continue spending money and it provides China with an ultra-safe investment.
Were China to stop buying so many U.S. bonds — or worse, start selling their portfolio — the impact could be massive. It would unleash financial turmoil across markets by suddenly raising concerns that the world's two biggest economies could be embarking in a mutually destructive financial war.
Even if the world's investors are not rushing to the exits, confidence in the U.S. has taken a big hit.
https://www.npr.org/2025/04/21/nx-s1-5361202/trump-tariffs-dollar-china-wall-street-bonds