### Global Economic Outlook Deteriorates Amid Trump’s Trade Policies The Organisation for Economic Co-operation and Development (OECD) has significantly revised its global growth forecasts, projecting a slowdown to **2.9%** for 2025 and 2026. This adjustment is primarily attributed to the ongoing trade tensions and inflationary pressures stemming from President Donald Trump's tariff policies, which have notably impacted the U.S. economy, now expected to grow by only **1.6%** this year. The OECD's previous estimates had anticipated a growth rate of **3.1%** for 2025, highlighting a stark decline in economic expectations due to escalating trade wars and protectionist measures [https://klse.i3investor.com/web/blog/detail/ceomorningbrief/2025-06-04-story-h499537853-OECD_Trims_Global_Outlook_as_Trump_Trade_War_Hits_US_Growth][https://www.investing.com/news/economy-news/oecd-slashes-global-growth-forecast-flags-impact-of-tariff-strife-on-u-s-economy-4077300]. ### Breakdown of the OECD's Revised Economic Forecast 1. **Global Growth Projections**: - The OECD forecasts global growth to slow from **3.3%** in 2024 to **2.9%** in 2025 and 2026, marking a significant downturn [https://www.independent.ie/business/trumps-tariffs-plunge-global-economy-into-a-slowdown/a1784134007.html]. 2. **U.S. Economic Impact**: - The U.S. economy's growth is now projected at **1.6%** for 2025, down from earlier estimates of **2.2%** [https://www.financialexpress.com/world-news/us-news/oecd-slashes-us-and-global-growth-forecasts-amid-trump-tariffs-turmoil/3866892]. - The OECD attributes this decline to Trump's tariffs, which have raised average U.S. tariff rates significantly, affecting trade dynamics [https://www.business-standard.com/world-news/oecd-trump-tariffs-us-global-economy-growth-forecast-2025-125060300644_1.html]. 3. **Inflation and Trade Barriers**: - Inflation among G20 economies is expected to moderate, yet the U.S. remains an outlier with persistent inflationary pressures due to trade policies [https://www.tuko.co.ke/business-economy/591429-trade-war-cuts-global-economic-growth-outlook-oecd]. - The OECD warns that further increases in protectionism could lead to an even weaker economic outlook [https://www.channelnewsasia.com/watch/oecd-cuts-global-gdp-forecast-amid-tariff-uncertainties-increase-trade-barriers-5164326]. ### Supporting Data and Evidence - **Growth Rates**: - **2024**: 3.3% - **2025**: 2.9% (OECD's revised forecast) - **U.S. Growth**: Expected to drop from **2.8%** in 2024 to **1.6%** in 2025 [https://www.huffpost.com/entry/united-states-growth-likely-slow-16-this-year-hobbled-trumps-trade-wars-oecd-says_n_683ef529e4b00333c9608eb2/?origin=top-ad-recirc]. - **Tariff Impact**: - Average U.S. tariff rates have increased from **2.5%** to **15.4%**, the highest since 1938, contributing to the economic slowdown [https://www.business-standard.com/world-news/oecd-trump-tariffs-us-global-economy-growth-forecast-2025-125060300644_1.html]. ### Conclusion: A Gloomy Economic Forecast In summary, the OECD's latest report underscores a **significant downturn** in both global and U.S. economic growth, primarily driven by the adverse effects of Trump's trade policies. The following points encapsulate the findings: 1. **Global growth is projected to slow to 2.9%** in 2025, down from 3.3% in 2024. 2. **U.S. growth is expected to be just 1.6%** this year, a notable decline from previous forecasts. 3. **Tariff policies are a major contributing factor**, raising trade barriers and inflation, particularly in the U.S. The OECD's outlook serves as a cautionary tale about the potential long-term impacts of protectionist trade policies on global economic stability [https://www.bloomberg.com/news/articles/2025-06-03/trump-s-tariffs-plunge-us-and-global-economy-into-slowdown].