Hedge fund manager Paul Tudor Jones has forecasted that the U.S. stock market will reach new lows, even if President Donald Trump reduces tariffs on China by 50%. Jones made these remarks during an interview on CNBC's 'Squawk Box', emphasizing the pressure on the market from both tariffs and the Federal Reserve's stance on not cutting interest rates. Jones highlighted that Trump's aggressive tariff policy, which includes a 145% levy on Chinese imports and China's retaliatory 125% tariffs, has contributed to market volatility. He noted that even a reduction to 50% would still represent the largest tax increase on American consumers since the 1960s, potentially reducing U.S. GDP growth by 2 to 3 percentage points. The S&P 500, despite recovering from a recent sell-off, remains 8% below its all-time high. Jones believes that macroeconomic conditions will continue to deteriorate, pushing stocks to new lows unless there is a significant policy shift from either Trump or the Federal Reserve. He suggested that the S&P 500 could fall to at least 4,982, a 10% decline from current levels, according to market expectations tracked by the CME FedWatch tool. Other analysts from Wells Fargo and HSBC have also expressed cautious outlooks on the market.