Jeffrey Gundlach sees better than 50% chance new tariffs happen, further hitting stocks

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Jeffrey Gundlach

Heidi Gutman | CNBC

Jeffrey Gundlach, the head of investment firm DoubleLine Capital, believes the U.S. will increase tariffs on China further before an trade agreement is reached.

“I think we’re going to keep seeing more tension and I think the 25% tariff bump is better than 50% chance” of happening, Gundlach told Scott Wapner on CNBC’s “Halftime Report” on Tuesday. “Both the premier of China and the president of the United States want to come across that they prevailed and didn’t give in.”

“I think you’ve got an irresistible force meeting an immovable object,” Gundlach added.

If tariffs increase as scheduled on Friday, Gundlach thinks the U.S. stock market will sell-off further.

“It’s already happening, I think. The market obviously doesn’t want increased tariffs, so it’s been kind of reacting to that,” Gundlach said.

This story is developing. Please check back for updates.

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