FITCH CAUTIONS: EASING US-CHINA TENSIONS DOES NOT LOWER GLOBAL RISKS
Fitch Ratings highlighted in a report on Tuesday that recent improvements in US-China trade relations should not be mistaken for a full return to "normal" interactions between the two nations.
Fitch noted that without a lasting agreement, there is still uncertainty about where tariffs will ultimately settle, as well as ongoing effects from current tariffs—both of which are significant to the broader economic outlook.
The reduction in tensions follows a spike in import activity ahead of expected tariff hikes, which contributed to a 0.3% decline in US GDP in the first quarter.
Even though some tariff reductions could soften economic consequences, global trade flows and supply chains continue to face risks.