From Yahoo Finance: 2025-04-15 10:21:00

European credit ratings agency Scope has issued a warning that the United States could face a downgrade if the ongoing trade war erodes trust in the dollar or if extreme measures like capital controls are implemented by President Trump. The dollar has seen its sharpest fall against major currencies in over 50 years due to Trump’s trade tariffs.

Scope, based in Berlin and used by the European Central Bank, highlighted the U.S. as one of the most exposed countries in the trade war. Potential scenarios such as prolonged tariff battles or the introduction of capital controls could lead to significant consequences for the dollar’s status as the dominant currency.

The head of sovereign ratings at Scope emphasized that doubts surrounding the dollar’s exceptional status could have a negative impact on the U.S. economy. The agency currently rates the U.S. at AA with a negative outlook, lower than other major rating agencies like S&P Global, Moody’s, and Fitch.

Scope also raised concerns about countries with significant trade surpluses and financial exposure to the U.S., including open economies like Ireland, countries sensitive to higher financing rates like Italy, oil exporters, and those with weak currencies like Turkey and Georgia. The impact on sovereign credit ratings will depend on the macro-economic environment, according to Scope’s report.

Read more: European rating agency Scope sends US downgrade warning