New Trump tariff on China likely, says DoubleLine’s Gundlach

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New Trump tariff on China likely, says DoubleLine’s Gundlach

On Tuesday, the 7th of May 2019, in a CNBC interview, the Chief Executive at DoubleLine Capital, Jeffrey Gundlach, who oversees more than $130 billion of assets under management, said that new US tariff on China would more likely to take place, given China’s stubborn stance on its restructuring efforts for US firms.

Latest comments from one of the leading US asset management providers came forth, after all three key indexes of Wall St. had tumbled more than 1.5 percent over a latest turn in trade negotiations with China, that had harshly renewed global growth worries and kept large investors at bay.

Besides, amid a tumultuous market sentiment in light of Trump’s latest tariff hike on Chinese goods, had kept the investors away from riskier assets and eventually a steep sell-off had emerged with a dangling axe swinging over the export-oriented stocks.

Adding that the market could witness more tension over the days ahead, Gundlach said, “I think the 25% tariff bump is better than 50% chance. The market obviously does not want to see increased tariffs, so it’s been kind of reacting to that”.

On Tuesday’s (May 7th) CNBC interview, while being asked whether the US market would be leaning on to further bearish grilling, the DoubleLine Capital executive had been quoted saying, “Of course we are. The U.S. stock market has gone nowhere in 15 months”.