The Organisation for Economic Co-operation and Development (OECD) has raised concerns over the detrimental impact of President Donald Trump’s escalating trade wars on global economic growth and inflation. In its latest report, the OECD has downgraded the growth forecasts for major economies, including the United States, Canada, Mexico, the United Kingdom, and China, for this year and the next.
A major issue raised by the OECD is Trump’s proposal to impose hefty tariffs on imports from Canada and Mexico. The report cautions that these actions could drive Mexico into a recession and significantly diminish growth prospects for both Canada and the U.S. This fragmentation of the global economy brings considerable risks as rising trade barriers hinder efforts to reduce inflation.
Meanwhile, the United Kingdom faces its own domestic issues, with the OECD lowering its growth forecast in light of ongoing inflationary pressures. The report indicates that the UK might face another downgrade from the Office for Budget Responsibility. To address these challenges, the OECD is urging nations to work together to prevent the introduction of trade restrictions that could adversely impact living standards.
In a related development, oil prices have surged to a two-week high due to U.S. airstrikes against Yemen’s Houthis and optimism over China’s economic plans to boost consumption. Financial markets have shown positive momentum, with gains in European and U.S. indices.
You Might Also Like- India’s Syngene International Acquires Biologics Facility
Domestically, concerns among Americans regarding tariffs are rising. A recent Harris Poll for The Guardian indicates that 72% of Americans worry about President Trump’s extensive tariffs on imports, up from 61% in January. Despite Trump’s reassurances, fears about the economic consequences are mounting, with 66% believing that the economy will take years to recover.
