OECD Reveals Shocking Impact of Trump’s Tariffs: What You Need to Know | CNN Business

In recent years, the trade war led by former President Donald Trump has caused concerns about economic impact in the U.S. and globally. The Organisation for Economic Co-operation and Development (OECD) recently released a report indicating that the situation may be worse than anticipated.

The OECD has reduced its 2025 economic growth forecast for the U.S. from 2.2% to just 1.6%. They expect even slower growth in the coming year. This decline is linked to tariffs and trade uncertainties initiated by Trump’s administration, which have left businesses and consumers uneasy.

High tariffs and retaliatory measures, especially from countries like China and Canada, are complicating trade. For instance, the OECD warns that a prolonged trade conflict could inflict more damage than the previous U.S.-China trade tensions in 2018-2019.

Economist Alvaro Pereira highlighted that trade has historically driven economic growth and lifted millions out of poverty. He pointed out that rising tariffs could lead to a situation where everyone is adversely affected. Mathias Cormann, Secretary-General of the OECD, noted that the current climate of uncertainty is weakening trade and investment.

Interestingly, recent data shows inflation has surged in many countries due to these new tariffs. Central banks are now faced with the challenging task of managing interest rates to combat rising prices while also considering the impact of ongoing trade disputes.

Twitter and other social media platforms have reflected mixed reactions to the trade war. Some users express frustration over rising costs, while businesses voice concerns about the unpredictability of tariffs affecting their operations.

In short, the trade conflict has sparked significant economic shifts, triggering cautious strategies among businesses and policymakers. As the situation evolves, it’s clear that the ramifications of these trade policies will be felt for years to come.

For more detailed insights on global trade dynamics, you can check out this OECD report.

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