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Fitch: De-fusing US-CN Tensions Does Not Signify Normalization
Fitch commented on Tuesday that the latest developments in US-China trade relations do not signify normalization between the two countries. In the absence of a lasting agreement, d...
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Fitch commented on Tuesday that the latest developments in US-China trade relations do not signify normalization between the two countries.

In the absence of a lasting agreement, doubts about the final tariff rates and the impact of already implemented tariffs will remain key factors in macroeconomic forecasts, the rating agency said.

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Before planned tariff hikes, a spike in imports weighed down the US GDP by 0.3% in the first quarter. Although the removal of tariffs could mitigate economic impacts, Fitch opined that global trade and supply chains remain fragile.

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