According to online reports, economists at Morgan Stanley said that U.S. trade negotiations are moving in the direction of tactical escalation. The bank reported that if the latest tariffs proposed by the Trump administration in letters to trading partners take effect, the weighted average tariffs in Asia will rise to 27%. However, Trump has said that the United States is close to reaching an agreement with India. Morgan Stanley said this showed that most large Asian economies would be able to reach an agreement before the August 1 deadline. But Japan and South Korea may not be able to resolve key issues through negotiations. Morgan Stanley said the issues include Japan's auto tariffs and agricultural products, as well as South Korea's auto and steel tariff reduction issues. (Jin Shi)