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Morgan Stanley: Trump's Tariff Letter May Signal Tactical Escalation in Trade Negotiations

Summary: According to Jinshi News, Morgan Stanley economists suggest that US trade negotiations are moving towards a tactical escalation. The report states that if the latest tariffs proposed by the Trump administration in letters to trading partners take effect, the weighted average tariff in Asia will rise to 27%. However, Trump has indicated that the US ...

According to Jinshi News, Morgan Stanley economists suggest that US trade negotiations are moving towards a tactical escalation. The report states that if the latest tariffs proposed by the Trump administration in letters to trading partners take effect, the weighted average tariff in Asia will rise to 27%. However, Trump has indicated that the US is close to reaching an agreement with India. Morgan Stanley indicates that most major Asian economies will likely reach agreements before the August 1 deadline. However, Japan and South Korea may struggle to resolve key issues through negotiations, including Japan's car tariffs and agricultural issues, as well as South Korea's car and steel tariff exemptions.

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Link: Morgan Stanley: Trump's Tariff Letter May Signal Tactical Escalation in Trade Negotiations [Copy]

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