The Biden administration’s decision to impose tariffs on $18 billion worth of Chinese imports could help some stocks break out, according to Morgan Stanley. The tariffs announced Tuesday target all kinds of goods imported from China, from electric cars to solar cells to certain types of steel and aluminum. The move follows weeks of warnings from White House officials urging China to change its trade practices, accusing the United States of disrupting global supply chains. Morgan Stanley analysts led by strategist Laura Sanchez said short-term growth headwinds from tariffs could be offset by a potential increase in demand for U.S. goods versus Chinese goods. “While new tariffs on clean technology imports could have a negative impact on short-term growth and therefore climate benefits, they should act as a demand booster for domestically produced products,” Sánchez said on Tuesday. wrote. Stocks likely to benefit include U.S. automakers Ford and General Motors, as well as solar panel maker First Solar. The 12-page report notes that First Solar remains “a significant beneficiary of trade policies that protect U.S. supply chains and provide developers with additional incentives to buy domestic products.” Domestic solar power manufacturers filed new anti-dumping and countervailing duty petitions three weeks ago alleging dumping on crystalline silicon batteries imported from Cambodia, Malaysia, Thailand and Vietnam, according to a Wall Street investment bank. submitted. FSLR YTD Mountain First Solar Stock. S&P 500 stocks rose 10%, but in 2024 they rose nearly 9%. Morgan Stanley maintains an overweight rating on First Solar stock. If the anti-dumping and countervailing duty filings are accepted by the Commerce Department and the International Trade Commission, “we expect this to result in accelerated booking momentum and improved pricing,” the analysts wrote. Sanchez said both General Motors and Ford would benefit from changes the new tariffs bring to the interpretation of certain provisions of the Anti-Inflation Act, affecting electric vehicle sales. The analyst said that while “incentivizing locally produced EVs could be costly from an adoption perspective,” both Ford and General Motors are looking to increase the It says it stands to benefit from increased demand. GM YTD Mountain General Motors Stock. ”[L]Demand expands due to decline in EV penetration rate [internal combustion engine vehicles]however, most investors maintain the view that it is legacy. [original equipment manufacturers] “We cannot delay or cancel EV spending plans without jeopardizing the final value,” Sanchez said. Morgan Stanley maintains overweight ratings on both Ford and GM. Ford stock rose modestly by 2% in 2024, while GM stock rose more than $25%.F YTD Mountain Ford Stock.
