BlackRock's macro credit team warns widespread tariffs could hit corporate credit

As markets plunge

Fixed income researchers and strategists at BlackRock have warned that the fundamentals of corporate credit could be dented by “across-the-board” tariffs.

While BlackRock defined these levies as "not targeted to specific countries or products", the asset management giant said that accompanying retaliatory tariffs have "the potential to weigh on corporates' input costs and profit margins, beyond a ‘one time' upward price level shock".  In BlackRock's Global Credit Quarterly Outlook for Q2 2025, the firm's head of macro credit research, Amanda Lynam, and macro credit research strategist Dominique Bly said: "we see a risk that corporates may look to reduce headcount as a tool to protect margins." US stocks see 'worst week in five years' as...