Morgan Stanley/Carpenter: Trump's Proposed Tariffs Will Hinder U.S. Economic Growth

Morgan Stanley's chief global economist Seth Carpenter stated that the tariffs proposed by Donald Trump will harm U.S. economic growth until 2026. In an interview with CNBC, Carpenter mentioned that if all of Trump's proposed tariffs were to take effect at once, they could create a "significant negative shock" to the economy. He maintains Morgan Stanley's baseline scenario that these tariffs will be implemented gradually through 2025, arguing that they will lead to higher inflation. Carpenter warned, "We think that by 2026, due to these tariffs and other policies, growth in the U.S. will begin to decline significantly," and added, "It is very clear that tariffs are increasing inflation. It is evident that tariffs pose a barrier to growth not only for the countries where they are applied but also for the U.S."