The OECD warned that consumers would face much of the burden of the trade war as inflation is expected to be sent surging.
The OECD cut UK and global growth forecasts due to trade tensions, particularly those initiated by US President Trump. The UK's growth is projected to be 1.4% in 2025 and 1.2% in 2026, while global growth is expected to slow to 3.1% in 2025 and 3% in 2026. Canada and Mexico face significant economic blows, and the US also faces downgraded growth forecasts. The OECD warns of higher inflation and a negative impact on living standards due to increasing trade barriers, with consumers bearing much of the burden. Europe will also be severely impacted by the trade war, with sharp downgrades across the board.
