President Donald Trump’s trade war will wreak greater economic damage than previously expected, both in the United States and everywhere else, according to new forecasts by the Organisation for Economic Co-operation and Development. In a report Tuesday, the group of 38 mostly wealthy nations sharply downgraded its 2025 economic growth forecast for America to 1.6% from the 2.2% projected in March and said growth would be even weaker next year. The report underscores the uncertainty and chaos around Trump’s tariffs, as well as their potential to cause lasting harm across the world.
The Paris-based organization cited higher tariffs, including retaliatory tariffs imposed on American exports, a slowdown in net immigration and a “sizable reduction” in the federal workforce.The OECD also expects the global economy to slow markedly to 2.9% growth both this year and next — a downgrade from its prior forecasts of 3.1% and 3% respectively. That’s based on the assumption that tariffs worldwide will remain at their mid-May levels, it said.
