Türkiye’s CDS Falls as Global Tensions Ease After Trump’s Tariff Reprieve
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Global markets responded positively after U.S. President Donald Trump announced a temporary pause on new tariffs, prompting a notable improvement in Türkiye’s financial indicators.
Türkiye’s 5-year credit default swap (CDS)—a key measure of the country’s risk premium—dropped by 40 basis points to 337, reflecting reduced market anxiety amid easing global trade tensions.
Trump Temporarily Suspends Tariffs on Dozens of Countries
Following heightened market volatility, Trump decided to temporarily suspend tariffs imposed earlier in the week on the European Union and 56 other countries. However, punitive tariffs on China remain in place, with increased levies still being applied.
“More than 75 countries have contacted the White House to discuss trade barriers,”
Trump said, adding that none of them had initiated retaliatory measures.
90-Day Tariff Freeze With 10% Reduction
The U.S. president further announced a 90-day pause in trade tariffs, during which a mutual 10% reduction in applicable duties would be enforced. This move aims to ease tension and provide space for diplomatic negotiations on trade policy.