DoubleLine Capital's Jeffrey Gundlach sees a "better than 50% chance" that the U.S. will boost tariffs on Chinese goods to 25% before the two sides reach a trade agreement, he told CNBC's Scott Wapner.
“Both the premier of China and the president of the United States want to come across that they prevailed and didn’t give in," he said.
Be prepared for a further stock sell-off on Friday, if, as President Trump has threatened, the U.S. ratchets up the tariffs on that day, Gundlach said.
Previously: Gundlach says it's still a bear market (March 12)
Now read: Weak jobs numbers don't dent rates »
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