Stocks Sink As Trump Confirms Trade War Not Over: "I'm A Tariff Man"

US equities are tanking at the open, led by Dow Transports (autos) following a confirmation from White House economic advisor Larry Kudlow that if a deal is not reached with China within 90 days, then the trade-war will re-escalate.

Pointedly, Kudlow said that if a deal with China is not reached then US would increase tariff rates to 25%, adding that Washington could add to that.

Stocks don't like it...

 

Overnight saw Dow futures erase all the trade-truce gains, bounce, and are now fading again...

Seems like the yield curve is on to something..

Kudlow's reality-check comments come as President Trump attempted to talk up the 'deal' - and the market - once again, noting that "negotiations have started..."

But even Trump admits to uncertainty on the 'deal': "seeing whether or not a REAL deal with China is actually possible..."

"President Xi and I want this deal to happen, and it probably will..." ... Or not...

And finally, Trump confirms he is not afraid to re-escalate: "Remember, I am a Tariff man."

"We are right now taking in $billions in Tariffs." He is not wrong...

The question is, who is paying it?

However, Trump ends on a positive note.