Finance Network reported on November 20th (Editor Zhou Ziyi), US President-elect Donald Trump's tough stance on tariff policy has sparked controversy. Morgan Stanley's Chief Global Economist Seth Carpenter mentioned in an interview that Trump's proposed tariffs would lead to higher inflation and weaken the future economic growth of the USA.

President-elect Trump has repeatedly stated since his campaign that he intends to impose tariffs of 10% to 20% on all imported goods, and additional tariffs of 60% to 100% on Chinese goods.

Many economists have already warned that the intensity and scope of global trade frictions may expand, possibly leading to retaliatory tariffs against the USA.

The current series of thorny issues include whether these tariffs will be implemented, as well as when and at what speed they will be implemented.

About this, Carpenter pointed out in an interview during the annual Asia-Pacific summit held by Morgan Stanley in Singapore that if Trump's tariff policy is implemented, these tariffs will lead to higher inflation.

Carpenter also mentioned that if these measures are implemented simultaneously, they may cause 'significant negative impact' on the economy, but he insists on Morgan Stanley's basic assumption that these tariffs will be phased in starting in 2025.

"It is clear that tariffs will push up inflation; it is also clear that not only the economies of the countries subject to tariffs will be affected, but the US economy will also be affected... we believe that by 2026, due to the impact of these tariff policies and some other policies, US economic growth will start to plummet significantly."

Not only Carpenter has this concern, Mark Malek, Chief Information Officer of brokerage firm Siebert, also pointed out that if the proposed tariffs are implemented, especially on top of the tariffs already imposed by the Biden administration, a range of industries including autos, consumer electronics, machinery, construction, and retail will face higher inflation.

Malek stated that Trump proposed a 60% tariff on Chinese goods, combined with the current 100% tariff on Chinese-made electric vehicles by Biden, will "seriously impact" the auto industry; while a universal 10% tariff on imported consumer electronics will increase costs for companies like Tesla, Microsoft, and Apple. These high costs will ultimately be passed on to consumers, thereby raising inflation.

Data shows that the US Consumer Price Index (CPI) for October rose by 2.6% compared to the same period last year, slightly higher than the 2.4% increase in September. Despite the slight increase, the US inflation rate is on a downward trend after being at multi-year highs, prompting the Federal Reserve to cut interest rates.