Moody's stated that Trump's tariffs would weaken the U.S. economic power and exacerbate concerns about the country's budget deficit.

Moody's, the international credit rating agency, has warned that Donald Trump's trade war will weaken America's economic power and exacerbate concerns regarding the country's ballooning deficit. In a stern warning to investors, Moody's stated that Trump's tariff policies would "burden business investments, diminish consumer confidence, and prevent the Fed from lowering interest rates." The agency also cautioned that the affordability of U.S. government debt is "significantly weaker" than it has been in the last twenty years, and worse than other countries with higher credit ratings.

Moody's noted, "Given that the U.S. hosts the world’s primary reserve currency, we recognize the extraordinary demand for U.S. Treasury debt and believe it has a greater capacity to carry debt burdens than most countries." However, they continued, "The potential negative credit effects of sustained high tariffs, unfinanced tax cuts, and significant tail risks to the economy have reduced expectations that these challenging forces will continue to offset expanding fiscal deficits and declining debt affordability."