Washington – The economic growth of the United States will decrease to 1.6% this year from 2.8% last year, since the erratic commercial wars of President Donald Trump interrupt global trade, increase costs and leave companies and consumers paralyzed by uncertainty.
The Organization for Economic Cooperation and Development forecast on Tuesday that the economy of the United States, the largest in the world, will be delayed even more to 1.5% in 2026. Trump’s policies have increased the average tariff fees of the USA. Tariffs increase costs to US consumers and manufacturers that depend on imported raw materials and components.
World economic growth will decrease to only 2.9% this year and stay there in 2026, according to the OECD forecast. Marks a substantial growth of the growth of 3.3% global growth last year and 3.4% in 2023.
The world economy has proven remarkably resistant in recent years, continuing to expand constantly, although without meaning, in the face of global clashes such as Covid-19 pandemic and the invasion of Ukraine of Russia of Ukraine.
But global trade and economic perspectives have been clouded by Trump’s radical taxes on imports, the unpredictable way that it has eliminated them and the threat of reprisals from other countries.
Reversing decades of American policy in favor of the freer world trade, Trump has raised taxes of 10%, tariffs, in imports of almost all countries of the earth along with specific tariffs on steel, aluminum and cars. He has also threatened with more import taxes, including A duplication of its tariffs on steel and 50% aluminum.
Not to mention Trump by name, the OECD chief economist, Álvaro Pereira, wrote in a comment that accompanied the prognosis that “we have seen a significant increase in commercial barriers, as well as in the uncertainty of economic and commercial policy. This strong increase in uncertainty has negatively affected business confidence and consumer and is ready to stop investment and investment.”
In addition to the uncertainty about Trump’s commercial wars: a Federal Court in New York last week blocked Most Trump’s rates, ruling that he had exceeded his authority to impose them. Then, an appeals court allowed the Trump administration to continue raising taxes while the appeals made their way through the United States courts.
It is forecast that China, the second largest economy in the world, will see the 5% growth last year to 4.7% in 2025 and 4.3% in 2026. Chinese exporters will be affected by Trump’s tariffs, limbing an economy already weakened by the collapse of the Nation’s real estate market. Part of the damage will be compensated by government help: Beijing last month plans described to reduce interest rates and encourage bank loans In addition to assigning more money for factory improvements and elderly care, among other things.
The 20 countries that share the euro currency will collectively see the economic growth of 0.8% last year to 1% in 2025 and 1.2% next year, said the OECD, helped by the interest cuts of the interest rates of the European Central Bank.
The OECD based in Paris, which includes 38 member countries, works to promote international trade and prosperity and issues periodic reports and analysis.
