Paul Tudor Jones says stock market will hit new lows even if Trump cuts China tariffs to 50%

Billionaire hedge fund manager Paul Tudor Jones recently made a bold prediction, stating that stocks are likely to hit new lows even if President Donald Trump eases up on his aggressive tariffs on China. Jones expressed his concerns during an appearance on CNBC’s “Squawk Box,” highlighting the current economic climate as a cause for worry.

According to Jones, the combination of Trump’s unwavering stance on tariffs and the Federal Reserve’s reluctance to cut interest rates does not bode well for the stock market. He believes that even if Trump decides to reduce tariffs on China to 50%, it will not be enough to prevent stocks from plummeting to new lows.

The investor’s comments come in the wake of Trump’s recent tariff increases on Chinese imports, which have caused significant volatility in the market. Despite some recovery, the S&P 500 is still 8% below its all-time high following the tariff escalation.

While China has expressed a willingness to negotiate with the U.S., Jones remains skeptical about the market’s future prospects. He pointed out that the Federal Reserve’s decision to maintain interest rates and the ongoing trade tensions are contributing to the market’s uncertainty.

Jones, who famously predicted and profited from the 1987 stock market crash, emphasized that stocks have not yet hit rock bottom as macroeconomic conditions continue to deteriorate. He suggested that unless the Fed adopts a more dovish approach and significantly cuts rates, the market is likely to experience further declines.

As the founder and chief investment officer of Tudor Investment, Jones is closely monitoring the market for any signs of improvement. He believes that once stocks hit new lows, it will prompt both the Fed and Trump to take action, leading to a period of adjustment and reality check.

In addition to his financial expertise, Jones is also known for his involvement in nonprofit initiatives such as Just Capital, which evaluates and ranks U.S. companies based on their social and environmental impact. His insights on the market provide valuable perspective for investors navigating the current economic landscape.