Investors are bracing for a long and uncertain summer as President Donald Trump’s administration continues to explore alternative ways to impose tariffs on US trading partners. Monica Guerra, head of U.S. policy at Morgan Stanley Wealth Management, says tariff rates are likely to remain elevated due to these new avenues.
Guerra notes that the president can invoke sections of US trade law to investigate China for unfair trade practices and target countries or products based on national-security concerns. She considers these options realistic and warns that the average effective tariff rate could jump back up to 20%, a level seen in April, if not addressed. This suggests a prolonged period of tariff-driven turmoil in financial markets.
Source: https://www.marketwatch.com/story/why-investors-may-be-in-for-a-long-summer-with-no-easy-resolution-on-tariffs-775a6b85