Morgan Stanley: Tariffs cannot give Trump what he wants

According to a report by Golden Finance, Morgan Stanley stated that "tariffs are unlikely to restructure the US economy in the way the Trump administration wants." Analysts said in a research report that the imbalance between US savings and investment has led to the country's trade deficit and cannot achieve meaningful rebalancing in the short term. The most likely outcome of tariffs is isolationism, which is equivalent to higher inflation and lower growth. The initial reaction of the financial market indicates that they agree with this viewpoint. President Trump's policies amount to a return to protectionism, with effective tariffs on US imports potentially rising to 22%, a level not seen in a century and more than double analysts' expectations at the beginning of this year. The risk of economic recession has sharply increased. (Golden Ten)