Fitch named Canada, China, Germany, Japan and Mexico as being identified explicitly by Trump, while Brazil, Canada, China, Germany, the Netherlands, Mexico and the United Kingdom have the highest stock of US investment in manufacturing.
"US policy predictability has diminished, with established international communication channels and relationship norms being set aside and raising the prospect of sudden, unanticipated changes in US policies with potential global implications," the release stated.
The primary risks include disruption to trade relations, migration limits, confrontation among policymakers and diminished international capital flows, the materialization of which would put negative pressure on public finances and economic growth.
Trump Infrastructure Plan May Boost US E&C Backlogs #Fitchwire https://t.co/3tOS2OfFsh pic.twitter.com/sysigkasER
— Fitch Ratings (@FitchRatings) February 2, 2017
The release noted that Trump has withdrawnthe United States from the Trans-Pacific Partnership, stressed a desire to renegotiate the North American Free Trade Agreement (NAFTA), threatened to penalize US companies that invest abroad and accused multiple other nations of manipulating currency.
Although the current period of disruptive changes made by the Trump administration could settle in line with existing frameworks, Fitch said the present balance of risks "points toward a less benign outcome."