The Fitch Ratings agency reduced its Gross Domestic Product (GDP) expectations of the US in 2025 on Thursday, specifically highlighting that the announcement of “Liberation Day” tariffs of the Trump administration represents a direct risk for the economic health of the US.
Outstanding aspects
- The day of liberation carries US tariff rates to a level not seen since 1909.
- The US growth in 2025 will probably be slower than the 1.7% we had projected in March, since tariffs are higher than anticipated.
- Tariff increases will result in higher prices for consumers and lower corporate benefits in the US.
- The upward pressure on goods prices due to tariffs means that Fed will probably become more cautious compared to new short -term rates cuts.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
