US President Donald Trump’s aggressive trade policies have abruptly set the world onto a path of slower growth and higher inflation that could worsen notably if tensions escalate, the OECD said.
The OECD has significantly cut Canada's growth outlook due to the impact of Trump's trade policies, projecting a slowdown to 0.7% in 2025 and 2026. These policies are expected to cause slower global growth and higher inflation, disproportionately affecting Canada and Mexico due to their trade relationships with the U.S. A scenario where the U.S., Canada and Mexico lower tariffs could improve Canada's growth.
