Paris-based agency higher trade barriers and increased policy uncertainty will weigh on activity
The OECD warns that Donald Trump's trade wars will slow global growth, fuel inflation, and increase policy uncertainty. They downgraded growth projections for 2025 and 2026, predicting increased trade costs will lead to higher prices and prolonged restrictive monetary policy. Specific impacts include potential recession in Mexico, reduced growth in Canada and the US, and a meager growth projection for the Euro area. The OECD suggests easing trade tensions to improve policy certainty and growth prospects.
