Fitch Ratings fired a warning shot Friday about President Donald Trump's economic policies, saying hard-line stances on trade and immigration pose potentially serious problems for the world.
"The Trump administration represents a risk to international economic conditions and global sovereign credit fundamentals," the agency said in a statement. "U.S. policy predictability has diminished, with established international communication channels and relationship norms being set aside and raising the prospect of sudden, unanticipated changes in U.S. policies with potential global implications."
The most serious implications would involve credit downgrades for sovereign debt.
Fitch does not mention the U.S. specifically being subject to a reduced rating, but listed several of its trading partners that could take a hit should negative conditions emerge from Trump's saber-rattling on international trade agreements and immigration flows.
Among those that could face the most serious impact are Canada, Germany, China, Japan and Mexico, all of which have been mentioned by Trump or his advisors as benefiting from unfair trade pacts. Fitch warned that as the rhetoric escalates, "the list is unlikely to end there."
"One interpretation of current events is that, after an early flurry of disruptive change to establish a fundamental reorientation of policy direction and intent, the administration will settle in, embracing a consistent business- and trade-friendly framework that leverages these aspects of its economic program, with favourable international spill-overs," Fitch's analysts said.