President Donald Trump's trade war will limit growth in the global economy, according to OECD.
The economic cooperation organization is lowering its global growth figures for 2025 from previously 3.3 percent to 3.1 percent due to trade tariffs and economic uncertainty.
Primarily, it concerns challenges for Canada and Mexico, the US's neighboring countries that are now most exposed to Trump's trade tariffs. For Mexico's part, the assessment is that economic development will be so weak that the country's economy will enter into recession in 2025.
For the US's part, the backlash is expected to occur primarily in 2026, when the country's economic growth is estimated to amount to 1.6 percent, the weakest figure since 2011, with the exception of the pandemic year 2020.
