Trade war may become longer headwind for US firms

Important market: A file picture showing a US cargo ship berthing at a port in Qingdao, China. Fitch says the state of the US-China trading relationship is an important issue for US corporations. — AFP

CHICAGO: US-China trade tension may become a longer than expected headwind for US corporations as the prospect of additional US tariffs, retaliation from China, and prolonged negotiations rise, says Fitch Ratings.

The ratings agency said although credit implications are limited, risk mitigation via pricing actions, supply chain adjustments, localised production, and end-market diversification could increase in importance due to the need to manage ongoing trade uncertainty.