New Delhi, April 6 -- Reciprocal tariffs imposed by the US significantly raise risks for a recession in the US and constrain the US Federal Reserve's ability to lower interest rates further, Fitch Ratings said in a note.

Post the higher-than-anticipated tariffs imposed the US administration, the rating agency projected that US growth in 2025 is likely to be slower than the 1.7 per cent that it had projected in March.

According to Fitch Ratings, tariff hikes will result in higher consumer prices and lower corporate profits in the US.

"Higher prices will squeeze real wages, weighing on consumer spending, while lower profits and policy uncertainty will act as a drag on business investment," Fitch said.

"Upward pressure on goods prices fr...