Mint Quick Edit | Trump’s trade ship wreck: Any saviours?
An OECD forecast shows the slow-growth path Trump’s tariffs are charting for the US economy. Will the federal government’s non-executive branches drive a rethink of America’s trade policy?
US President Donald Trump has been pitching his tariffs as a way of making the American economy great again. Going by the Organisation for Economic Co-operation and Development’s (OECD) latest forecast, though, its growth is set to slow, not accelerate, as a direct consequence of his policies.
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US economic growth is projected to dip to 1.6% in 2025 and 1.5% in 2026 from 2.8% in 2024. Global growth, too, would be set back to 2.9% this year, down from 3.3% in 2024. With the existing trade order in chaos, countries need to urgently strike deals.
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Otherwise, the repercussions would be severe. “Weakened economic prospects will be felt around the world, with almost no exception," the OECD said. While Trump has stepped back from his country-specific “Liberation Day" tariffs, which have also run into a legal challenge, average tariffs even after the rollback stand substantially higher than earlier.
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Worse still, where rates will settle remains uncertain, which hurts business and consumer confidence. Regardless, Trump seems keen to push ahead. Will the federal government’s non-executive branches intervene against his self-damaging tariffs? They mustn’t forget why they exist.
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