US growth likely to slow to 1.6% this year, hobbled by Trump’s trade wars, OECD says
By PAUL WISEMAN Associated Press Economics Writer WASHINGTON AP U S economic progress will slow to this year from last year as President Donald Trump s erratic bargain wars disrupt global commerce drive up costs and leave businesses and consumers paralyzed by uncertainty The Organization for Economic Cooperation and Progress forecast Tuesday that the U S economic activity the world s largest will slow further to just in Trump s policies have raised average U S tariff rates from around when he returned to the White House to highest since according to the OECD Tariffs raise costs for consumers and American manufacturers that rely on imported raw materials and components World economic advancement will slow to just this year and stay there in according to the OECD s forecast It marks a substantial deceleration from increase of global improvement last year and in FILE Shipping containers are seen ready for travel at the Guangzhou Port in the Nansha district in southern China s Guangdong province April AP Photo Ng Han Guan File The world business sector has proven remarkably resilient in new years continuing to expand steadily though unspectacularly in the face of global shocks such as the COVID- pandemic and Russia s invasion of Ukraine But global exchange and the economic outlook have been clouded by Trump s sweeping taxes on imports the unpredictable way he s rolled them out and the threat of retaliation from other countries Reversing decades of U S framework in favor of freer world arrangement Trump has levied taxes tariffs on imports from almost every country on earth along with specific duties on steel aluminum and autos He s also threatened more import taxes including a doubling of his tariffs on steel and aluminum to Without mentioning Trump by name OECD chief economist lvaro Pereira wrote in a commentary that accompanied the forecast that we have seen a considerable increase in contract obstructions as well as in economic and transaction initiative uncertainty This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back contract and venture Related Articles At present in History June the Zoot Suit Riots begin in Los Angeles Romanian man pleads guilty to swatting plot that targeted an ex-US president and lawmakers Stabbing attack at Oregon homeless shelter sends people to hospital man in custody Newark airport runway project wraps up early so when will flight limits ease Sean Diddy Combs ex-aide says she was brainwashed when she sent loving texts years after rape Adding to the uncertainty over Trump s transaction wars A federal court in New York last week blocked the greater part of Trump s tariffs ruling that he d overstepped his authority in imposing them Then an appeals court allowed the Trump administration to continue collecting the taxes while appeals worked their way through the U S courts China the world s second-biggest financial system is forecast to see upsurge decelerate from last year to in and in Chinese exporters will be hurt by Trump s tariffs hobbling an commercial sector already weakened by the collapse of the nation s real estate realm Particular of the damage will be offset by help from the regime Beijing last month outlined plans to cut interest rates and encourage bank lending as well as allocating more money for factory upgrades and elder care among other things The countries that share the euro currency will collectively see economic improvement pick up from last year to in and next year the OECD commented helped by interest rate cuts from the European Central Bank The Paris-based OECD comprising member countries works to promote international agreement and prosperity and issues periodic reports and analyses
