The OECD has downgraded its growth forecasts, emphasizing that President Trump’s trade policies are significantly impacting economic growth across various nations, including the UK, US, Canada, and Mexico. This report indicates that trade wars provoke uncertainty, affecting investment plans and market stability.

According to the economic organization, the impact of tariffs leads to increased prices, straining consumers and businesses alike. The connection between trade barriers and inflation growth cannot be ignored as markets react to the persistent uncertainties stemming from these policies.

The OECD urges policymakers to reassess their approach to trade, advocating for reduced tariffs and negotiated settlements rather than ongoing conflicts. Collaboration among nations will be vital to restore confidence in trade agreements and stimulate sustainable economic growth. Failure to address these challenges may result in prolonged economic setbacks on a global scale. The call for policy reform is clear, as nations must prioritize cooperative strategies to navigate these turbulent waters.