Morgan Stanley says

• Morgan Stanley analysts predict that the United States further increases taxes on imports from China and meet tariffs for certain products from Europe and Asia, but finally facilitate the tasks of products from Canada and Mexico.

• The analysts wrote that this trajectory could lead to concentrating the effects on the tariff effects on certain sectors.

• Automobile, shoes and clothing importers may be in a particularly difficult place, since the increase in prices can influence their demand, the analysts said.

Morgan Stanley mapped how mutual tariffs that are to be announced on Wednesday can affect various sectors, from car companies to shoe brands.

Analysts assume that the USA will increase import taxes for goods from China by another 10% and organize tariffs for certain products from Europe and Asia, including Vietnam.

They expect the ultimate loosening of tariffs for products from Mexico and Canada, which can concentrate the effects of import taxes in some certain sectors, according to the analysts.

“Although the exact path to implementation is unclear, we can say with clarity both on tariff levels, products and geographies: the tariffs go higher, and companies should be prepared to mitigate the effects,” says the note.

Car, shoes and clothing importers may have the most difficult time because they can only increase limited prices without depressing demand, according to the analysts.

The analysts expect the biggest effects here:

• Customs on automobiles and auto parts from Mexico and Canada would bring cars out of reach for many consumers and restrict demand, according to the analysts. Profits can come under pressure from General Motors (GM), which rates 26% of his vehicles from Mexico and Ford (Ford (F) Morgan Stanley said. Other car companies with unfavorable tariff exposure are Stellantis (STLA), BMW, Mercedes-Benz, Porsche and Volkswagen.

• Possible tariffs for goods from Vietnam could have an impact on shoes companies, since 34% of shoe imports were moved into from the country last year, said Morgan Stanley. Nike (NKE), Allbirds (BIRD), When holding (Onon) and Skechers USA (Skx) The analysts said.

• Customs can be a more difficult adjustment for retailers such as Academy Sports and Outdoors.Aso), Five below (FIVE), Warby Parker (Wrby), Wayfair (W) and dollar tree (DLTR), said the analysts. In the meantime, Bath & Body works (works (worksBbwi) and Levi Strauss (Levi) Appear relatively isolated, the analysts said.

• China is still an epicenter of hardware production for technology devices such as smartphones, tablets, computer monitors and headphones, so that tariffs can weigh retailers like Best Buy (Best Buy () (Best Buy ().Bby), said the note.
  

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