Fitch states that EU tariffs will not directly impact EU sovereign ratings but could exacerbate existing credit challenges.
Fitch Says EU Tariffs Won't Directly Change EU Sovereign Ratings but May Worsen Existing Credit Challenges 🇪🇺📉
Fitch Says EU Tariffs Won't Directly Change EU Sovereign Ratings but May Worsen Existing Credit Challenges
Fitch Ratings has issued a cautious outlook on the U.S. credit environment, highlighting that persistent policy risks are clouding the outlook. The agency downgraded 25% of U.S. sector outlooks to "deteriorating," citing factors such as high interest rates sustained for longer periods, weakened business and consumer confidence, and fiscal pressures. Despite raising its GDP growth forecast for the U.S. to 1.5% in 2025, Fitch warned that economic momentum is expected to fade. Globally, Fitch noted ongoing risks to credit markets stemming from tariffs, volatile market conditions, and geopolitical tensions. In Europe, the trade war continues to negatively affect sector outlooks in developed markets. While Fitch stated that EU tariffs will not directly alter sovereign credit ratings in the European Union, they may exacerbate existing credit challenges within the region.
