Fitch Warns of Potential U.S. Economic Slowdown Due to Tariff Increases

According to Odaily, Fitch Ratings has indicated that the U.S. economy might experience slower growth in 2025 than the previously forecasted 1.7% in March, due to higher-than-expected tariffs. The increase in tariffs is expected to lead to higher consumer prices and reduced corporate profits in the United States. The recent tariff adjustments have returned U.S. tariff rates to levels last seen in 1909, exerting upward pressure on goods prices. This situation may cause the Federal Reserve to adopt a more cautious approach regarding further interest rate cuts in the near term. Additionally, the tariff hikes could place downward pressure on the ratings of some sovereign nations with high export value-added levels.