In a report released today, the Organisation for Economic Cooperation and Development predicts that Trump’s tariff hikes will hinder growth in Canada, Mexico, and the United States while increasing inflation.
The OECD revised its previous global growth estimate of 3.3%, indicating that it will now decelerate to 3.1% in 2025 and 3.0% in 2026.
U.S. economic growth, according to the OECD, is projected to be 2.2% in 2025 and decrease to only 1.6% in 2026, revising its forecasts from 2.4% and 2.1%.
Instead of a predicted 2% rise, Canada’s growth rate will slow to 0.7% this year and next.
Mexico’s economy is expected to decline by 1.3% this year and 0.6% next year, rather than growing by 1.2% and 1.6% as previously anticipated.
On Sunday, Trump credited his administration for lowering the prices of basic goods, stating, “When I took it over, eggs were through the roof, and now eggs are down 35% over a short period of time.” He also said prices for gas and energy were falling.
The President also referred to the upcoming tariffs on April 2nd as a “liberating day” for the U.S. “It’s going to be reciprocal — in other words, whatever they’re charging, we’re charging. Then in addition to that, on autos, on steel, on aluminum, we’re going to have some additional tariffs.”
The OECD review indicated that tariff increases would lead to higher inflation, maintaining elevated interest rates for extended durations.
By CEO NA Editorial Staff
