In 2024 the U.S. built just 5 ships. China Built 1,800 ships. Yes, 360x more.
Now guess who makes your laptops, solar panels, and even your ceiling fan motors? It's not America. It's China.
So when Trump came back to power, he tried to fix what decades of capitalism had broken: America can't manufacture anymore. It's the world's biggest importer, not producer.
Why did Trump impose tariffs? Not because he hates China. But because he fears that soon, "everything that matters in life will depend on China's permission." — U.S. Sec. of State Marco Rubio
Let's be clear. America has deindustrialized itself chasing corporate profits. Factories moved to China, Mexico, Vietnam. Cheaper labor = higher margins= higher stock prices.
But now, U.S. can't even build drones at scale.
Ukraine war exposed this: Million-dollar U.S. tanks destroyed by ₹3 Lakh Chinese drones. That's when America panicked. It realized: "In war, industrial power wins."
So Trump slapped massive tariffs on China. He wanted to bring back factories. But there was a problem. Tariffs hurt the stock market. Stock Markets fell more tham 20%. Trump didn't care. He said, "Only 10% of Americans own 88% of stocks." "I care about the 90%." The narrative? Trump = Main Street. Not Wall Street.
But then… came the real threat, Bond market broke down. Bond yields shot up by 40 bps. That's like the pulse rate of the financial system suddenly spiking.
The U.S. Bond Market is worth $40 Trillion (₹336 Lakh Crore).
Yes, way bigger than the stock market.
Why did this happen? Because America is running twin deficits:
•Budget Deficit & Trade Deficit; The bond market started doubting if the U.S. can repay its debt.
Why does this matter?
Because everything runs on bonds.
•Banks use them for daily liquidity;
•Corporates use them to pay salaries;
•Mutual funds & pensions use them to park trillions.
If the bond market collapses, it's systemic failure. Markets freeze. ATMs shut. Governments can't pay. Basically repeat of 2008 on steroids.
Even Jamie Dimon, CEO of JPMorgan, had to call Trump. "Act now. Delay the tariffs."
And Trump surrendered—not to stocks, but to bonds; He delayed tariffs by 90 days. Why? Because no leader, no matter how powerful, can afford to piss off the bond market.
The U.S. has a public debt of $34.5 Trillion (₹2,800 Lakh Crore). That's $100,000 per citizen.
India's per capita debt? Just $2,200.
So what's the lesson for us?
•Build your industrial base
•Don't let financial markets dictate national policy
•And remember:
In any war—economic, trade, or military—manufacturing wins.
Trump is powerful. But not more than the bond market!!
