() President Donald Trump’s sweeping tariffs and their 90-day pause have caused market whiplash in the United States and abroad. One of the most affected is the bond market, in which debts are sold and purchased.

Trump referenced the bond market when explaining his decision to pause tariffs against other countries, calling it “very tricky.”

What is the bond market?

Think of the bond market as a giant lending club.

Investors lend money to governments and companies by purchasing bonds. In return, they’re promised regular interest payments and, eventually, their money back.

Typically, the bond market is seen as a safe place for investors. When confidence is high, the market allows governments to borrow money with reduced interest.

But the recent tariffs have pushed global markets to uncertainty, putting the bond market in a flux.

How did the bond market influence Trump’s tariff pause?

When bond interest rates rise sharply which happened this week borrowing becomes expensive, not only for corporations but also for governments.

Higher borrowing costs can slow down economic growth.

“One thing we know for sure is they do not like uncertainty, because that makes it really, really hard for investors to predict what’s going to happen, good, bad or indifferent,” said Stephanie Temporiti of Hightower Wealth Advisors.

Some experts said the disruption to the bond market may have been the main reason Trump decided to change course.  

“The bond market is very tricky. I was watching it. But if you look at it now, it’s beautiful,” Trump said earlier this week. “I saw last night where people were getting a little queasy.” 

Trump’s main goals were to raise the value of the dollar and rally the bond market, said Brian Gardner, chief Washington policy strategist for wealth management and investment banking company Stifel.

If accomplished, those goals “would offset some of the negative impact of higher tariffs and higher costs,” Gardner said. “And that’s not what was happening.”

partner The Hill contributed to this report.