Morgan Stanley: Tariffs Won't Give Trump What He Wants

Jin10 data reported on April 5th that Morgan Stanley stated, "Tariffs are unlikely to restructure the U.S. economy in the way the Trump administration hopes." Analysts noted in a research report that the imbalance between U.S. savings and investment has led to the country's trade deficit, and meaningful rebalancing cannot be achieved in the short term. The most likely outcome of tariffs is isolationism, which equates to higher inflation and lower growth. The initial reaction of financial markets indicates they agree with this view. President Trump's policies amount to a return to protectionism, with effective tariffs on U.S. imports potentially rising to 22%, a level not seen in a century, more than double what analysts expected at the beginning of the year. The risk of recession has risen sharply.