The commercial prices of US President Donald Trump will reach global growth and increase inflation, predicted the OECD in his last forecasts.
Canada and Mexico should see the greatest impact because they have had the hardest rates imposed on them, but American growth should also be affected.
The OECD has more than half reduced its growth prospects for Canada for this year and next year, when it expects Mexico to be pushed into a recession.
Trump imposed 25% rates on all imports of steel and aluminum. The United States has also imposed prices of 25% on other imports from Mexico and Canada – with some exemptions – and a 20% levy on Chinese products.
The OECD expects Canada’s growth rate to slow down 0.7% this year and in 2026 compared to its previous 2% forecasts for the two years.
Mexico’s economy should now contract 1.3% this year and reduce to 0.6% next year, instead of growing 1.2% and 1.6% as expected.
The United States has also been demoted, with growth of 2.2% expected this year and 1.6% in 2025, against previous forecasts of 2.4% and 2.1%.
The OECD said that for the global economy, growth would slow from 3.2% in 2024 to 3.1% in 2025, mainly due to trade tensions.
He added that growth in China, the second largest world economy, should slow from 4.8% in 2024 to 4.4% in 2026.
