US tariffs may cause global recession: Fitch

The new US tariffs are likely to push many countries into recession, Olu Sonola, Head of US Economic Research at Fitch Ratings, said.

The US tariff rate on all imports soared to 22% from 2.5% in 2024 under the new global levies imposed by President Donald Trump, Reuters reported, citing Sonola.

This is a game changer, not only for the US but for the global economy, he said. "Many countries will likely end up in a recession. You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time," he added.

Trump signed an executive order imposing reciprocal tariffs on countries worldwide, at a minimum of 10%. He described the move as a historic event and a day of liberation for the US, data available with Argaam showed.