Morgan Stanley: More tariffs on China could trigger a global recession
More tit-for-tat tariffs in the U.S.-China trade war could set the global economy up for a recession, according to Morgan Stanley.
“If talks stall, no deal is agreed upon and the U.S. imposes 25% tariffs on the remaining $300 billion of imports from China, we see the global economy heading towards recession,” Chetan Ahya, Morgan Stanley’s chief economist and global head of economics, said in a note Monday.
President Donald Trump has slapped higher tariffs — from 10% to 25% — on $200 billion worth of Chinese goods and China retaliated by raising duties on $60 billion of U.S. goods to as high as 25% starting June 1. Trump had also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”
Reported by CNBC