Morgan Stanley: Trump's tariff letter could mean a tactical escalation in trade talks
economists at Morgan Stanley said that the United States' trade negotiations are moving towards a tactical escalation. The report said 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 stated that the United States is about to reach an agreement with India. Morgan Stanley said that this indicates that most of the major Asian economies will be able to reach an agreement before the deadline of August 1. However, Japan and South Korea may not be able to resolve key issues through negotiations. Morgan Stanley said that these issues include Japan's car tariffs and agricultural issues, as well as South Korea's issues with car and steel tariff exemptions.
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