Posted by on December 4, 2018 1:57 pm
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Categories: Economy

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.

The article, "Stocks Sink As Trump Confirms Trade War Not Over: "I'm A Tariff Man"", was syndicated from and first appeared at: http://feedproxy.google.com/~r/zerohedge/feed/~3/Q-t4izel4Wo/stocks-sink-white-house-confirms-china-trade-war-will-re-escalate-if-no-deal-90.

You may find more great articles by Tyler Durden on http://www.zerohedge.com/fullrss2.xml/sites/default/files/images/user5/imageroot/draghi/CBO%20August%201.png/%2A%7CFORWARD%7C%2A.

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