Just as investors thought it was safe to buy-the f**king-dip after Powell's plunge, President Trump steals the jam out of their donut by announcing new China tariffs...

"... on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country "

In a series of tweets, Trump laid out the state of the China trade deal... in a word - terrible...

Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to... ...buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die! Trade talks are continuing, and... ...during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%... ...We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!

And just like that - gains were gone...

And 10Y Treasury yields crash to 1.89% - the lowest since 2016...

And the jaws of death widen...

As 10Y yields have now dropped below Trump Election lows...

2Y Yields are freefalling!!!

And yuan plunged...

Erasing all the trade-truce gains...

On the bright side - we are sure this will give Powell more room to cut more.