By CCN: Morgan Stanley’s chief economist expects a global recession in three quarters if the trade war escalates, CNBC reported Sunday. In May Donald Trump hiked tariffs on Chinese imports from 10% to 25%. The move sent equities into a tailspin, wiping out $1 trillion from global stock markets on the next day of trading. The U.S. also threatened to expand the 25% tariff to include $300 billion more Chinese goods. Morgan Stanley’s chief economist, Chetan Ahya, warned of the dire consequences in a research note Sunday. He said it would put the world “in a recession in three quarters.”

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