this post was submitted on 24 Nov 2024
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Donald Trump's proposed tariffs will dent U.S. economic growth going into 2026, said Morgan Stanley's chief global economist Seth Carpenter.

President-elect Trump has stated that he intends to impose a blanket tariff of 10% to 20% on all imports, along with extra tariffs ranging from 60% to 100% on goods imported from China. During the September Presidential debate, he described this approach as a means to extract funds from competing countries.

There is also a question of when and how swiftly these tariffs get implemented. In the event that they are enacted all at once, they could result in a "big negative shock" to the economy, Carpenter told CNBC's Sri Jegarajah on the sidelines of Morgan Stanley's annual Asia Pacific Summit in Singapore.

Carpenter, who maintained Morgan Stanley's base case of these tariffs being spread over 2025, said they would lead to higher inflation.

"Then into 2026, we think growth starts to come down a great deal in the U.S. because of those tariffs and some of the other policies," he cautioned.

"Very clear, tariffs push up inflation. Very clear, tariffs are a drag on growth for the U.S., not just for the countries that the tariffs are put on," Carpenter added.

top 28 comments
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[–] Sanctus 66 points 3 days ago (1 children)

Its probably going to wind up making China a lot more powerful.

[–] RememberTheApollo_ 42 points 3 days ago

That’s what useful idiots are good for.

[–] [email protected] 51 points 3 days ago

a means to extract funds from ~~competing countries~~ poor and middle class americans

fixed that.

he still has no fucking clue how tariffs work.

“Donald Trump was the dumbest goddam student I ever had.” Dr. Kelley (Wharton professor)

no shit.

[–] Hobbes_Dent 35 points 3 days ago

Congrats! Always nice to see people getting good news en route to getting what they asked for.

[–] [email protected] 22 points 3 days ago

The dildo of consequences rarely comes lubed.

[–] Botzo 16 points 3 days ago (1 children)

"Growth" is possibly the dumbest metric we've been sold.

But now every publicly traded or VC backed company has to "grow" constantly at a multiplicative rate endlessly. Can't be happy making some number of units a year. Gotta diversify and keep finding new ways to grow the business.

God forbid anybody mentions market saturation, or even worse: long term customer satisfaction.

No, profit and dividends weren't enough. Growth offers more faster, so torch anything that stands in the way.

[–] FabledAepitaph 0 points 2 days ago

I feel you... but without "growth", how will all these children get job, and how will we get promotions?

[–] fluxion 21 points 3 days ago

All so Musk and Bezos can build bigger yachts

[–] [email protected] 8 points 3 days ago

Now do mass deportations economic effect. Gonna be shit for the USD

[–] just_another_person 16 points 3 days ago (1 children)

Y'all are going to be without jobs while the corporate buddies come and take all your shit. Good job, America.

[–] [email protected] 2 points 3 days ago

so nothing has changed. whew, was worried for a sec

[–] SatansMaggotyCumFart 11 points 3 days ago

The tariffs are going to be the least of America’s problems.

Watch The Road become everyday life in the next four years.

[–] inclementimmigrant 3 points 2 days ago

Good. Americans need to get to the Find Out stage hard.

[–] Kyle_The_G 5 points 3 days ago (1 children)
[–] MutilationWave 1 points 3 days ago (2 children)

Yeah I want to cash in like I did during the pandemic (and lost because I expected a W and we got a V). But I'm more concerned this time the dipshit in chief is going to flip the casino. When do we totally cash out?

[–] Kyle_The_G 2 points 3 days ago

Thats the question isn't it I have no idea these days lol. Everything happens so fast now

[–] [email protected] 2 points 3 days ago
[–] [email protected] 2 points 3 days ago

Fuck Morgan Stanley

[–] just_another_person -4 points 3 days ago (3 children)

He won't do it. He wanted to get out of jail. That's it.

He won't be able to do any of the dumb shit he promised with Executive Order alone.

[–] [email protected] 20 points 3 days ago (1 children)

What has SCOTUS possibly done to show that they won't rubber stamp each and every thing he does.

Edit: That's not to say the tariffs are going to go through. I'm not sure they will. Rule #1 is you do not fuck with the bag and this is just about the definition of fucking with the bag

[–] halcyoncmdr 8 points 3 days ago

He won't be able to do any of the dumb shit he promised with Executive Order alone.

He won't need to. He's got Congress and the Supreme Court to do what he wants.

[–] [email protected] 6 points 3 days ago (1 children)

doomsday scenario number 6:

senate takes the 'nuclear option' on killing filibuster (but reinstates it before midterms) with just a simple majority.

house and senate pass every stupid fucking thing donvict has pulled out of his diaper, everything in project 2025, and anything else the masters-of-the-strings want.

[–] just_another_person -2 points 3 days ago (1 children)

Democrats were literally saying this was an option 6 months ago, as well as expanding and packing SCOTUS. I 100% expect these pieces of shit to take that note and do it instead because they have the opportunity.

Who are we blaming about it though?

[–] MutilationWave 1 points 3 days ago