Fitch: US trade protectionism remains key risk for world economy

The US-based ratings agency, Fitch ratings, published a latest on the US economy, highlighting the following:

US trade protectionism remains key risk for world economy

US & countries directly targeted by imposition of punitive US import tariffs would see largest losses of GDP

The strongly protectionist rhetoric on trade seen during President Trump's election campaign and the new administration's early days in office has not, so far, translated into aggressive unilateral trade measures from the US.

However, given the strength of anti-globalisation sentiment in the election and the continued focus of US policy makers on reducing bi-lateral trade deficits, the possibility of a more disruptive and unilateral US approach that is less compatible with the existing global trade governance framework - and much more likely to prompt retaliatory actions from US trade partners - remains a significant risk.