A sharp sell-off in U.S. government bond markets and the dollar has set off fears about the growing fallout from President Trump’s tariffs, which have been a major driver of investor sentiment in recent months.

The sell-off, which began on Tuesday, saw investors dumping U.S. Treasury bonds, with yields surging to their highest levels since 2011. The move was swift and decisive, with traders scrambling to get out of the market as the benchmark 10-year yield jumped by more than 20 basis points in a matter of hours.

The sell-off has sent shockwaves through global financial markets, with investors seeking safe-haven assets such as gold and other currencies. The dollar, which had been seen as a safe haven due to its perceived stability and low inflation expectations, is now coming under pressure.

This sudden shift in market sentiment has raised questions about the “safe haven” status of the U.S. dollar, which has traditionally been seen as a reliable store of value during times of economic uncertainty. While investors still appear to be willing to hold onto dollars, the sell-off suggests that they are beginning to lose confidence in their ability to withstand market volatility.

The sell-off is also being fueled by concerns about the impact of President Trump’s tariffs on global trade flows and the U.S. economy. The tariffs, which have been imposed on goods such as steel and aluminum, have sparked a trade war with countries such as China and Canada, leading to fears that they could have far-reaching consequences for the global economy.

As markets struggle to come to terms with the implications of the sell-off, investors are being forced to re-evaluate their assumptions about the U.S. dollar’s safe haven status. While it is still possible that the dollar will recover from this latest bout of selling, the sell-off suggests that investors are becoming increasingly nervous about its ability to withstand market shocks.

The implications of this sell-off go beyond the United States, however. A weakening of the dollar could have a number of consequences for other countries, including higher import costs and reduced competitiveness in global markets. It also raises concerns about the potential for inflation, as a stronger dollar can put downward pressure on commodity prices and reduce demand for exports.

As the sell-off continues to unfold, investors will be watching with bated breath for any signs of a rebound. But for now, the market is focused on survival, and the U.S. dollar’s safe haven status remains very much in doubt.