Trump tariffs spark US government debt sell-off

The cost of borrowing for the US government rose as confidence in the economy waned

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The government sell bonds - essentially an IOU - to raise money from financial markets and these are viewed as a safe investment.

The US does not normally need to offer high rates to attract buyers but on Wednesday the interest rate on bonds spiked sharply to touch the highest level since February at 4.5%.

Trump has gone ahead with sweeping tariffs on goods being imported into the US, while Washington's trade war with Beijing has escalated.

After the US implemented a 104% tariff on products from China at midnight on Wednesday, Beijing hit back with 84% levy on American products.