OCDE says Trump’s tariff effects are worse than expected

According to the company’s new estimates for financial cooperation and development, US President Donald Trump’s trade war can cause more economic loss than in the US and other countries.

In a report released on Tuesday (3), a group of 38 countries said that the economic growth of the United States was greatly reduced to 1.6% by 2025, compared to 2.2% in March and further weaken next year.

This report highlights uncertainty and confusion around Trump’s charges, as well as the ability to cause permanent damage around the world.

The Paris -based company cites high rates, including revenge rates imposed on exports, net migration slowdown and “significant reduction” in federal workforce.

OECD hopes that the global economy will be significantly damaged in 2.9% growth in both this year and the next two – 3.1% and 3% respectively in relation to its previous expectations.

According to OECD, it depends on on Ha that the worldwide tariffs are located at the middle level.

“If everyone starts raising tariffs around the world (…) we will end in the world where we are worse,” said OECD chief Economist Alvaro Pereira, Jain Ashar, Jain Ashar, CNN.

“In recent decades, trade growth and well -being engines,” it will take a billion people out of poverty, “he said.

Instead, rates and global trade war have increased uncertainty, OECD said in its report.

“The global economy has reached a further uncertainty from the elastic growth of elastic growth,” OECD Secretary General Mathias Cormon said in a statement.

“Current political uncertainty weakens trade and investment, reducing consumer and business confidence and reducing opportunities for growth.”

In his financial perspective report that the decline in the US, Canada, Mexico and China will be “concentrated”, OECD said that four countries that were most influenced by new Trump tariffs.

Since its re -resumed in January, the US President has increased import rates on major products, including cars and steel, most US business partners.

Although its tariff plan is a legal obstacle last week, many of the United States trade partners from July 9 are expected to reach a round of “mutual tariffs” with high “mutual tariffs” from July 9 if they do not enter into a deal with Washington.

The tariffs, their arbitrary execution and both injected in the global economy are weighing on many companies and consumers.

According to OECD, the new US import taxes, combined with revenge in revenge -built revenge by China and Canada, “in 2018 and 2019 are a bigger disturbance than the US and China trade tensions” – this is an indication of Trump’s first tenure of trade war.

New tariffs in countries that impose new tariffs can cause inflation in the risk of inflation and central banks – interest rates slowly increase prices – he said.

On the other hand, Trump has publicly pressured US President Jerome Powell to reduce the cost of debt in the United States, but Powell likes to see how the world’s largest economy will affect the world’s largest economy before deciding whether to cut rates.