The OECD has planned that the OECD has provided for in its last forecast the President of the United States, Donald Trump.
Canada and Mexico are expected to see the greatest impact as they have had the hardest rates imposed, but the growth of the United States is also expected to be affected.
The OECD has halved its growth prospects for Canada for this year and then hopes that Mexico will be pushed in a recession.
Trump has imposed 25% of rates on all imports of steel and aluminum. The United States has also imposed 25% of fares on other imports from Mexico and Canada, with some exemptions, and 20% of Chinese goods tax.
In response, Canada and the EU have announced retaliation rates.
The OECD of Paris said that the highest commercial barriers and « the increase in the uncertainty of geopolitical politics and politics » were hitting the investment and spending of homes.
In the last OECD forecast:
- The Canada economy is expected to grow only 0.7% this year and 2026 compared to the previous forecast of 2% for two years
- Mexico is now expected to be hired by 1.3% this year and reduce 0.6% more next year, instead of growing 1.2% and 1.6% as expected above
- Growth in the United States has also been reduced, with a growth of 2.2% planned this year and 1.6% by 2025, below the previous forecasts of 2.4% and 2.1%
- Despite United States imposing rates in China, the OECD has slightly increased its growth forecast for the country to 4.8%.
The OECD said that the developing trade war was expected to increase inflation, which will mean that interest rates will remain higher for longer.
« Significant risks are maintained, » he warned. « The fragmentation of the global economy is a key concern.
« The highest and wider increases in commercial barriers would affect growth worldwide and add inflation. »
The OECD said that for the world economy, growth would be reduced by 3.2% by 2024 to 3.1% by 2025, largely as a result of commercial tensions.
He also said that he hoped that inflation, the rate of increase in prices, would continue to slow down, although not as much as expected.
The organization provides for an inflation of 3.8% this year to 20 of the largest economies in the world, compared to 3.5% it had previously planned.
Last week, Tesla warned Elon Musk’s electric vehicle firm which, and other North -American exporters, could be harmed by the commercial battle.
In a letter to the United States Trade Representative, the firm said that North -American exporters were « exposed to disproportionate impacts » if other countries were retaliated on Trump’s rates.
The OECD reduced its growth forecast for the United Kingdom’s economy to 1.4% by 2025, from the previous forecast of 1.7% and up to 1.2% by 2026, below 1.3%.
However, the forecast is more optimistic than the Bank of England, which earlier this month reduced the growth forecast of the United Kingdom from 2025 to 0.75%.
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