As Wall Street looks past the August 1 trade deadline, Morgan Stanley warns that investors should "resist" the temptation to "move on from tariff deadlines."
Why it matters: The call is a rare warning from Wall Street analysts, who are otherwise largely sanguine about the broader effect of tariffs on the economy and financial markets.
What they're saying: "Clients we talk to are certainly jaded when it comes to the tariff topic, and we sympathize," the analysts noted.
"The evolution of tariffs can still create pressure and opportunity."
Between the lines: Morgan Stanley notes three reasons behind the call.
The full economic impact of existing tariffs is still unknown.
Upcoming trade decisions involving major partners like China, Canada and Mexico could have broader implications for U.S. growth.
Even if tariffs don't weigh on growth, they may weigh on specific sectors of the stock market. Those effects may not be priced in yet.
The bottom line: We've reported that Wall Street doesn't seem to care about tariffs, but this note is a reminder that not everyone is ready to move on.
