Fitch Warns of Slowdown as U.S. Tariff Hikes Impact Economic Growth

Fitch Ratings has issued a warning, suggesting that U.S. economic growth may slow to 1.7% or lower in 2025 due to the recent surge in tariffs. According to Fitch, these tariffs are expected to drive up consumer prices and decrease corporate profits within the U.S. Notably, the latest tariff adjustments bring U.S. tariffs back to levels last seen in 1909, leading to increased costs for goods. This situation could lead to the Federal Reserve taking a more cautious stance towards further interest rate reductions in the near future. Furthermore, these tariffs may also negatively impact the creditworthiness of certain countries with high export volumes.