US equities are tanking at the open, led by Dow Transports (autos) following a confirmation from White House economic advisor Larry Kudlow that if a deal is not reached with China within 90 days, then the trade-war will re-escalate.

Pointedly, Kudlow said that if a deal with China is not reached then US would increase tariff rates to 25%, adding that Washington could add to that.

Stocks don't like it...

Overnight saw Dow futures erase all the trade-truce gains, bounce, and are now fading again...