Since they have been subjected to the most severe tariffs, Canada and Mexico are predicted to be most affected, but US growth is also anticipated to be negatively impacted.
While Mexico is predicted to be forced into a recession, the OECD has more than cut its growth forecast for Canada in half for this year and the following year.
All imports of steel and aluminum are now subject to 25% tariffs imposed by Trump. In addition, the US has levied a 20% tax on Chinese goods and 25% tariffs on other imports from Canada and Mexico, with some exceptions.
Both the EU and Canada have declared retaliatory tariffs in response.
Higher trade barriers and “increased geopolitical and policy uncertainty” are having a negative impact on household spending and investment, according to the Paris-based OECD.
