The trade war led by President Donald Trump has caused a sell-off in US dollars and Treasurys, making investors shift their money from American assets to traditional safe havens due to concerns about policy changes. The euro has seen a three-year high against the dollar, benefiting from the trend of selling American assets.

On Friday, the US Dollar Index dropped below the crucial 100 level for the first time since July 2023, with a 2.7% loss in the past week and a 7.6% decline year-to-date. Treasury yields have increased, leading to a fall in asset prices. The 10-year Treasury yield is up by almost five basis points at around 4.45%.

This surge in bond yields, indicating potential higher interest rates, prompted Trump to impose a 90-day pause on most tariffs. The decrease in the dollar and Treasurys is significant, as these are usually viewed as safe assets during uncertain times, with Treasurys considered low-risk.

Conversely, investors are turning to safe-haven assets such as the Japanese yen, the Swiss franc, and gold. Some experts refer to this shift away from the dollar, Treasurys, and US equities as the "Sell America" trade.

Analysts like Chris Weston have noted a strong inclination to sell US assets and move capital away from the heightened risk, signaling the shift in focus following Trump's tariff pause. The market's quick rally on Wednesday reversed on Thursday due to ongoing macroeconomic uncertainties.

The odd trend of rising long-term interest rates alongside declining stock prices indicates a broad reluctance toward US assets in global financial markets, as highlighted by former Treasury Secretary Larry Summers. Summers likened the treatment of US assets in markets to that of a troublesome emerging market.