A 50-year-old intergovernmental organization with 38 member countries is pulled the covers on President Donald Trump’s claims of a “BOOMING” U.S. economy this morning.
Trump boasted on Truth Social that “Because of Tariffs, our Economy is BOOMING!” early Tuesday. Within a few hours of that post, however, the Paris-based Organization for Economic Cooperation and Development (OECD) released a forecast predicting global economic growth will slow to 2.9 percent this year, down from 3.3 percent in 2024. It blamed Trump’s tariffs specifically for the doldrums.
“Lower growth and less trade will hit incomes and slow job growth,” the OECD’s chief economist Alvaro Pereira told Bloomberg.
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The combination of trade barriers and economic uncertainty is lowering confidence and hurting investment, while adding to inflationary pressures, said the report, according to Bloomberg. Bloomberg also anticipated The U.S. economy itself to slow from 2.8 percent to just 1.6 percent, also due to Trump’s interference, which includes his administration’s federal workforce reduction and curbs on immigration impacting labor.
The organization predicted the bad numbers could get substantially lower if U.S. trade partners retaliated to Trump’s tariffs by spiking their own.
China and the U.S. just recently mounted a trade war after Trump raised baseline tariffs on Chinese imports to 145 percent. Beijing retaliated with its own 125 percent import tax on U.S. goods. China stepped away and downgraded the war only after the president balked and reduced U.S. tariffs by 115 percentage points for three months, allegedly to give negotiators room to maneuver.
However, even if Trump completely reversed course on tariffs, any bonus in growth and reduced inflation would not materialize immediately because of a tenacious drag from other nations’ heightened suspicion and uncertainty about Trump’s erratic policies.
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Read the full Daily Beast report here.
