Look for auto prices to go higher as US-China trade friction drags on, says Morgan Stanley

Morgan Stanley has warned of higher car prices following signs of further escalation in the U.S.-China trade war. U.S. Trade Representative Robert Lighthizer announced Wednesday that he was examining ways to raise duties on Chinese vehicles to 40%, which is the tax that Beijing now levies on American-made cars. Such tensions are likely to hurt both auto consumers and manufacturers according to Morgan Stanley. According to the company’s auto analyst, Adam Jones, The auto industry is the quintessential global supply chain  and any disruption of trade is going to lead to inflation.

(Source: CNBC)