Morgan Stanley: Tariffs can't give Trump what he wants
Golden Finance reports that Morgan Stanley stated, "Tariffs are unlikely to restructure the U.S. economy in the way the Trump administration hopes." Analysts in a research report said that imbalances between U.S. savings and investments have 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; effective tariffs on U.S imports could rise up to 22%, an unseen level for a century, more than double what analysts predicted earlier this year. The risk of economic recession has sharply increased.
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