Strategist: The tariff threat is back, and the market is relatively calm this time

The bond market's initial reaction to the new round of tariff threats from the Trump administration was to sell Treasuries, with 10-year yields recovering from early lows. But the volatility was modest. Clearly, investors widely expect that aggressive proposals to impose 50 percent tariffs on European Union imports will eventually be significantly weakened in the negotiations, as previous tariffs on China have been. "The market has calmed down now because this has happened before and we know what happened," said John Madziere, investment strategist at Vanguard, the global asset management giant. "It's like a'wolf is coming 'story, and people don't take it very seriously anymore." He added: "The government is not fooling around, they have their own plans and there are limits to how far they can go."