Global economies including Canada are stable, but tariffs weighing: OECD

A new report shows the global economic outlook for the year is better than previously thought, but still cautious because of the evolving tariff landscape.

A new report finds that despite the negative impacts of tariff policies worldwide so far, including in Canada, global economies are still expected to grow — unless tariffs escalate for the worse.

The latest economic outlook by the Organization for Economic Co-operation and Development, an intergovernmental organization with 38 member countries, shows that even as tariffs are creating significant challenges for economies worldwide, most are still performing better than expected.

“Global growth proved more resilient than expected in the first half of 2025, especially in many emerging markets but also the United States,” the report says.

“While the full impact of tariff increases is still unfolding, early signs of effects are visible in consumer behaviour, labour markets and prices.”

In March, United States President Donald Trump sparked a trade war by imposing tariffs on almost all countries, including Canada.

Talks are underway towards reviewing the Canada-United States-Mexico trade agreement (CUSMA) next year, with both the U.S. and Canada announcing public consultations earlier this month.

Tariffs that are currently in place have been leading to higher costs for some goods and services, which has led businesses to make difficult decisions.

Some businesses have reportedly been “absorbing” some of the increases so as to not have to raise prices for customers, but this has also meant losing potential profits. In other instances, businesses have had to adjust or halt expansion plans and diversify their supply chains to navigate around tariffs they would otherwise have to pay.