OECD forecasts a sharp economic slowdown and higher inflation in the U.S., citing tariffs
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U.S. economic growth is likely to hit the brakes this year, with GDP dramatically slowing due to the impact of the Trump administration's tariffs and uncertainty around its economic policies, the Organization for Economic Cooperation and Development, or OECD, said Tuesday.
GDP growth is forecast to slide to 1.6% in 2025 and 1.5% next year, a sharp reduction from the 2.8% growth recorded last year, according to the OECD, an international organization of 38 member countries that focuses on promoting economic growth.
While the OECD's U.S. forecast didn't mention President Trump by name, the report cited new tariffs as one of the primary causes of the economic slowdown. The Trump administration's policies, which have introduced new import duties on almost every foreign nation, have hiked the effective tariff rate to 15.4% from 2% last year, marking the highest rate since 1938, the group said.
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