OECD: Trump Tariffs Spur Sharp Global Growth Downgrade

The OECD has sharply downgraded global economic growth forecasts, attributing the slowdown to US President Donald Trump’s tariffs and rising trade tensions. Global GDP growth is now expected to drop to 2.9% in 2025 and 2026, lower than previous projections above 3%. The US is among the hardest hit, with growth slowing from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026, as higher tariffs and retaliatory measures weaken investment, consumer spending, and job growth. US inflation is projected to rise, with the effective tariff rate reaching its highest since 1938. China, Japan, and India also face notable economic downgrades. The OECD warns that further trade barriers could worsen the downturn and urges constructive negotiations to stabilize global markets.