U.S. government is thinking about cutting tariffs on Chinese goods from the current 145% to around 50%, possibly starting as soon as next week, according to the New York Post.
However, billionaire hedge fund manager Paul Tudor Jones believes that even if President Donald Trump lowers tariffs, the stock market could still fall.Speaking on CNBC’s Squawk Box, Jones explained:
> “Trump is firm on keeping tariffs, and the Federal Reserve is firm on not cutting interest rates. That’s bad news for the stock market.”
Jones warned that even if tariffs drop to 50% or 40%, they would still feel like a massive tax hike for businesses and consumers.
> “It would be the biggest tax increase since the 1960s,” he said, adding that this could slow down the U.S. economy by 2% to 3%.
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