Globally the chemicals, auto and tech sectors are exposed to trade disruptions.

The fallout from the U.S. trade war will put pressure on corporate revenues and profits, raising credit risks too, particularly for companies with higher leverage, Fitch Ratings says.

In a new report, the rating agency said that intensified trade conflict — prompted by the imposition of high, sweeping U.S. tariffs, and retaliatory measures from various markets — will increase the pressure on corporate balance sheets, and ultimately, credit ratings.

“The tariffs will cut revenue growth and profitability for most corporate sectors globally, limiting issuers’ ability to restore their leverage headroom and increasing pressure on ratings,” it said.

Several global sectors — including the automotive, technology hardware and chemicals industries — will be hit particularly hard by tariffs, “due to international exposure, significant cross-market trade activity or intricate supply chains,” it said.

Among these sectors, the global chemicals industry, the auto industry in North America, and the tech sector in the Europe, Middle East and Africa (EMEA) region have the highest proportion of issuers with leverage concerns, it noted.

Fitch estimated that 16% of corporate issuers globally had “leverage that exceeded their negative rating sensitivities” as of the end of 2024.

By geography, the Asia-Pacific region has the highest share of issuers (22%) with the worst leverage ratios, it noted.

Certain national sectors will also be heavily impacted by higher tariffs, it said — including homebuilders in the U.S. and China, the building materials and diversified industrials sectors in Mexico, and airlines in Latin America.

While leverage is a key concern for corporations, “rating downgrades could also be triggered by other factors, including falling profitability and cash flow generation, and deteriorating business factors,” Fitch noted.