💨 Abstract

Fitch Ratings predicts that US tariffs will reduce budget deficit in 2025 but will also limit economic growth due to additional tax cuts. The tariffs increase the US Effective Tariff Rate to 25%, raising recession risks and constraining the Federal Reserve's ability to lower interest rates. The tariff revenues are expected to be used for further tax cuts and expenditure reductions appear uncertain.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖