OECD warns of slowing US economic growth caused by Trump's tariff policy

The Organization for Economic Cooperation and Development (OECD) warns that US President Donald Trump’s tariff policy may lead to slower GDP growth rates in the US, Canada and Mexico, as well as contribute to the acceleration of inflation in these countries. 

According to the OECD estimates, the global economic growth will decelerate to 3.1% this year from 3.2% last year. In 2026, the growth rate may fall to 3.0%. Previously, the organization predicted the global GDP to rise 3.3% in 2025 and 2026.

Meanwhile, the US economy may increase 2.2% at the end of this year. The previous OECD forecasts expected it to rise 2.4%. In 2026, the pace of US GDP growth may slow down to 1.6%, according to the organization.

The economy of Canada, one of the main trading partners for the US, will grow only 0.7% in 2025 and 2026, well below previous OECD estimates of 2%.

The US president continues to follow an aggressive trade policy. Donald Trump promised to impose duties on automobile imports on April 2. In addition, reciprocal tariffs will be inflicted on countries which impose levies on imports of American goods, the US leader stated.