Fitch Agency explains the dangers of implementing Donald Trump's policies on tariffs.

Fitch Ratings warned in a report released on Tuesday that the proposed American tariffs by elected President Donald Trump could negatively impact global commodity markets, especially crude oil, base metals, and chemicals.

The global agency continued, stating that the decline in demand, particularly from China, the largest consumer of commodities, poses a significant risk. While the Chinese stimulus package may alleviate some pressure, the new tariffs—especially on steel and aluminum—could widen price gaps and disrupt trade flows.

Moreover, Fitch reported that escalating trade tensions could also lead to increased market volatility and regional disparities in price levels.

Regarding energy, Fitch stated that retaliatory tariffs by China in response to Trump are unlikely to significantly affect energy markets, as China accounts for about 10% of U.S. oil exports.

Finally, the United States' tougher stance on Iran may disrupt Iranian oil supplies, but this could be offset by excess capacity from the OPEC+ alliance.

Donald Trump had previously threatened to impose large tariffs if he returned to office, targeting BRICS countries with tariffs of up to 25% on Mexico and Canada and 10% on China.