Manila, April 9 -- International credit rating agency Fitch Ratings said Tuesday that it believes President Donald Trump's tariffs significantly raise recession risks in the US and restrict the US Federal Reserve's ability to cut interest rates further, given expected price shocks.

"Tariff revenues will help narrow the US budget deficit in 2025, but the hit to economic growth and additional tax cuts are likely to limit the size of any lasting fiscal benefit," Fitch said in a statement.

Stabilizing the US debt/gross domestic product ratio will be challenging as long as long-term spending pressures remain unaddressed.

Pointing out that the effective tariff rate of the US increased to about 25 percent with reciprocal tariffs announced on ...