"Earlier and broader tariffs should translate into softer growth this year, whereas we previously assumed it would weigh on growth mainly in 2026," said Morgan Stanley economists led by Michael T Gapen. The Wall Street brokerage lowered its Q4/Q4 2025 growth forecast to 1.5% from 1.9% earlier. It also lowered its 2026 growth forecast to 1.2% from 1.3%.