OECD Cuts US Economic Outlook Citing Inflation, Tariff Wars

The Trump administration justifies tariffs on foreign imports as a way to reduce existing trade imbalances and boost jobs within the country.

Container ships are docked at the Port of Oakland in Oakland, Calif., on Dec. 9, 2024. Justin Sullivan/Getty Images

Economic growth in the United States and globally could be at risk amid rising prices and countries implementing tariffs against imports, according to a new report by the Organisation for Economic Co-operation and Development (OECD), an intergovernmental organization of 38 member nations, mostly with high-income economies.

“Annual real GDP growth in the United States is projected to slow from its very strong recent pace, to 2.2 percent in 2025 and 1.6 percent in 2026,” after rising by 2.8 percent in 2024, the OECD stated in the March 17 report. “Global GDP growth is expected to moderate from 3.2 percent in 2024 to 3.1 percent in 2025 and 3.0 percent in 2026.”