Jeffrey Gundlach Jeffrey Gundlach speaking at Inside ETFs 2016.

Jeffrey Gundlach, chief investment officer of DoubleLine Capital, sees a better than 50 percent chance that there will be an increase in U.S. tariffs on China.

“We’re going to keep seeing more tension” around trade issues, Gundlach said in an interview on CNBC Tuesday.

China’s top trade negotiator Liu He will travel to the U.S. this week for high-stakes talks as prospects dimmed for maintaining a fragile truce after President Donald Trump threatened to raise tariffs on Chinese goods starting Friday.

Other comments by Gundlach included:

  • U.S. stocks are in a bear market because they haven’t returned to last year’s highs.
  • The U.S. debt and deficit are “out of control” because they’re growing during a strong economy, leaving little room to maneuver.
  • Fed’s Powell, during his last press conference, “looked scared.”
  • The U.S. economy is “rudderless,” Gundlach said.

Copyright 2019 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.