Trump's China Tariff Hikes Could Smother US Economic Growth: Fitch Ratings Sounds Alarm
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Fitch Ratings warns that aggressive trade tariffs proposed by former President Trump could lead to a reduction in US and global economic output. The credit rating agency predicts that in the event of a second Trump presidency, sharp increases in US trade tariffs, especially against China, are highly likely. The potential for a renewed US-led trade war in 2025 is growing, with Trump suggesting possible tariff hikes on Chinese goods of up to 60% and a 10% tariff on all US imports. Fitch's findings indicate that if the US imposes aggressive tariff increases, its GDP could decline by 0.4% to 0.8%, which could deepen to 1.1% if trading partners retaliate. The repercussions for US trading partners, particularly China, Canada, and Mexico, would be significant, with potential average GDP declines of around 1.8%. Fitch Ratings suggests that the persistent large US trade imbalance is more a reflection of the disparity between US national savings and investment and ongoing capital inflows into the country.
#TradeTariffs #EconomicGrowth #FitchRatings #DonaldTrump #UschinaTradeWar
https://markets.businessinsider.com/news/stocks/trump-s-china-tariff-hikes-could-smother-us-economic-growth-fitch-ratings-sounds-alarm-1033358327
Markets Insider /
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2024-05-10 00:38:28
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2024-05-10 00:38:28Event JSON
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"content": "Trump's China Tariff Hikes Could Smother US Economic Growth: Fitch Ratings Sounds Alarm\n==========\n\nFitch Ratings warns that aggressive trade tariffs proposed by former President Trump could lead to a reduction in US and global economic output. The credit rating agency predicts that in the event of a second Trump presidency, sharp increases in US trade tariffs, especially against China, are highly likely. The potential for a renewed US-led trade war in 2025 is growing, with Trump suggesting possible tariff hikes on Chinese goods of up to 60% and a 10% tariff on all US imports. Fitch's findings indicate that if the US imposes aggressive tariff increases, its GDP could decline by 0.4% to 0.8%, which could deepen to 1.1% if trading partners retaliate. The repercussions for US trading partners, particularly China, Canada, and Mexico, would be significant, with potential average GDP declines of around 1.8%. Fitch Ratings suggests that the persistent large US trade imbalance is more a reflection of the disparity between US national savings and investment and ongoing capital inflows into the country.\n\n#TradeTariffs #EconomicGrowth #FitchRatings #DonaldTrump #UschinaTradeWar\n\nhttps://markets.businessinsider.com/news/stocks/trump-s-china-tariff-hikes-could-smother-us-economic-growth-fitch-ratings-sounds-alarm-1033358327",
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