Hayes: Tariff Walls Could Starve Treasury Market, Force Fed Money Printer

• Tariff policies may cut foreign bond demand, pressuring the U.S. Treasury market.  
• Current account deficit grows as financial inflows sustain U.S. borrowing capacity.  
• Bipartisan trade shifts risk reducing capital inflows critical for deficit financing.

BitMEX co-founder Arthur Hayes warned via X that proposed Trump tariff policies could disrupt the U.S. Treasury market by reducing dollar inflows from exports. 

Hayes argued that if foreign nations, particularly major exporters like China, earn fewer dollars through trade, their capacity to buy U.S. bonds will decline.

Trump’s tariff formula is further evidence he is laser focused on reversing these imbalances. The problem for treasuries is that without $ exports foreigners can’t buy bonds. The Fed and banking system must step up to ensure a well functioning treasury mrkt, which means Brrrr. pic.twitter.com/doGPAaRfAl

— Arthur Hayes (@CryptoHayes) April 3, 2025

Hayes: Tariffs Risk Foreign Bond Buying, Force Fed ‘Brrrr’

This scenario would pressure the Federal Reserve and domestic banks to absorb Treasury demand, Hayes explained, increasing the need for monetary expansion. 

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