Trade Tensions and Corporate Risks

Fitch Ratings highlighted on Tuesday that the US corporate sector remains vulnerable to retaliatory actions from trade partners, despite the recent suspension of tariffs. This pause, lasting 90 days, has temporarily eased immediate threats but underscores ongoing vulnerabilities.

China Trade Relations Under Strain

"While the temporary tariff exemptions for key consumer electronics have provided some relief, trade tensions with China continue to escalate," Fitch noted. The agency emphasized that the focus of trade disputes is increasingly shifting towards China, posing new challenges for US businesses.

Sector-Specific Impacts

Earlier analyses by Fitch identified aerospace, defense, and pharmaceuticals as sectors with moderate exposure to retaliatory measures. However, the evolving nature of trade wars suggests that these assessments may need revision as dynamics change.