There is a "much bigger issue" for the market than concerns about trade, investing expert Richard Bernstein told CNBC on Tuesday.
In fact, over the last three to four months, almost every sizeable market sell-off has come from pro-inflation policies out of Washington, D.C., the CEO and chief investment officer of Richard Bernstein Advisors said.
"There is a major sea change going on in the backdrop where we're going from a disinflationary environment to an inflationary environment," Bernstein said on "Closing Bell."
"We have tight labor markets, we have tight product markets because the economy is strong. We just got tax cuts on top of that. We're now getting fiscal spending," he added.
In addition, there are trade issues and immigration restrictions in play now.
"They are all pro-inflation policies and that's the big issue in the background here," said Bernstein.
The action came after President Donald Trump said late Monday that he asked the United States trade representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. Beijing has pledged to fight back.
It was the latest salvo in escalating trade tensions with China. On Friday, the U.S. announced a 25 percent tariff on up to $50 billion of Chinese products. The Asian nation then said it would slap retaliatory tariffs on $34 billion worth of U.S. goods.