US Pres. Trump: Will just raise tariffs even higher if US doesn't make a deal with China

United States President Donald Trump On Tuesday said that he will "just raise tariffs" if the US doesn't make a deal with China.

"China is going to have to make a deal," Trump added, per Reuters. "We will see what happens."

These comments seem to be weighing on the risk appetite. As of writing, the 10-year US Treasury bond yield was down 1.7% on the day at 1.787% and the Dow Jones Industrial Average was erasing 0.4%. Meanwhile, the JPY is capitalizing on the risk-off flows with the USD/JPY pair dropping to 108.50 area.