The Globe and Mail reports in its Saturday edition that Monday's sharp sell-off on the New York Stock Exchange reflected traders' concerns about President Donald Trump's proposed tariffs on Canada and Mexico, while the rally in government bonds indicates a flight to safety amid recession fears. The Globe's guest columnist John Rapley writes that despite strong growth, the U.S. economy has a major vulnerability: its reliance on credit. Without the postpandemic surge in government debt, its economy would struggle like Canada's. The U.S., as the world's reserve currency holder, has more flexibility with creditors, but accumulating excessive debt inevitably leads to problems. If debt keeps rising, bond investors would be unable to absorb the added supply, which has the effect of driving up interest rates. That started last year, and the consequent rise in credit costs began crimping spending and investment. To prevent further rate increases, the government can cut spending, which may reduce economic demand. This is reportedly the aim of Elon Musk's Department of Government Efficiency. Although it is unclear how much money DOGE is saving, the resulting uncertainty has caused businesses and investors to be more cautious.