The Organization for Economic Co-operation and Development (OECD) recently made a significant downgrade in its global economic growth forecasts. It chalks up much of this drop-off on the tariffs slapped on U.S. consumers by former President Donald Trump. The OECD has revised its forecast for global growth downwards to 2.9%, from the previous estimate of 3.1%. This recent reversal marks a shift towards greater recognition of the economic threat posed by Trump’s chaotic and reckless tariff agenda on the world’s economy.
The story of tariffs Trump’s return to the White House ushered in a second tariff tsunami—this time, aimed at our closest allies and trading partners. These moves have injected serious chaos into international markets. In recent months, for instance, they’ve been blowing whistles of their own about looming inflation in America. The OECD’s chief economist, Alvaro Pereira, emphasized the widespread repercussions of these tariffs, stating, “We are forecasting basically a downgrade for almost everybody.”
The nonprofit is in the process of rereviewing those projections. It stresses that declining economic fortune will be felt in almost every part of the earth. For all the pain inflicted, the real purpose of Trump’s tariffs has largely failed – to boost U.S. These changes have led some to worry that global economic growth will be weaker than previously hoped and will push U.S. inflationary pressures upward.
Our friends over at the OECD recently cautioned that surging inflation could derail the U.S. economy. This is in opposition to Trump’s now-proven false assertions throughout his presidential campaign that inflation would go down. These contradictions underscore the need for thoughtful deliberation about the efficacy of today’s economic policies, including their profound impacts on all citizens and private enterprises and their treatment.
The economic volatility caused by the unpredictability of Trump’s tariffs has caused dozens of economists to downgrade their forecasts for growth around the world. According to a recent OECD report, the costs of these damaging tariffs have been widely felt. They have dramatically reduced growth projections for dozens of countries. Consequently, countries heavily dependent on global markets might soon be faced with deeper economic scars.