Fitch: Tariffs proposed by Trump will impact global economy

Fitch Ratings Agency said that the large increases in tariffs proposed by former President Donald Trump if he wins the presidency of the United States will likely lead to a decline in American and global production.

Fitch explained in a report published today that the risk of a renewed trade war led by the United States is increasing in 2025, as Trump indicated possible increases in customs tariffs on China of up to 60% and a comprehensive tariff of 10% on all American imports.

If this scenario occurs, Fitch expects the level of US GDP to decline by up to 0.8%, and if US trading partners respond in kind, the extent of the damage could reach a decline in output of 1.1%, with inflation rising by up to 0.4 percentage points. , short term.

The agency added that for US trading partners, the impact will be greater in the trade war, as GDP in China, Canada and Mexico is expected to decline by an average of 1.8% in the worst-case scenario.