Morgan Stanley On The US-China Tactical Escalation: "A Pattern Has Emerged"

By Michael Zezas, Global Head of Fixed Income Research at Morgan Stanley

If you’ve been following the US/China relationship this year, a pattern has emerged: A new round of tariffs or export controls, a flurry of headlines, and market tremors, followed by a search for the next uneasy equilibrium. The latest episode is no exception: China’s move to tighten rare earth export controls and the US threat of 100% tariffs are launching another cycle.