Canada and Mexico’s growth predictions by cutting off by the Organization for Economic Cooperation and Development

The escalating trade tariff for US President Donald Trump will predict global growth and increase inflation, and the Organization for Economic Cooperation and Development expected in its latest expectations.

Canada and Mexico are expected to see the biggest influence because they had the harshest tariffs imposed on it, but it is expected to grow in the United States as well.

The Organization for Economic Cooperation and Development in the Organization of Economic Cooperation and Development has led to half its outlook on Canada for this year and water, while it expects Mexico to recession.

Trump imposed a 25 % tariff on all steel and aluminum imports. The United States also imposed a 25 % tariff on other imports of Mexico and Canada – with some exemptions – and 20 % tax on Chinese goods.

In response, Canada and the European Union alike announced a retaliatory tariff.

The Organization for Economic Cooperation and Development in Paris said that the higher commercial barriers and “increased geopolitical and political uncertainty” were reaching investment and spending on families.

At the latest expectations of the Organization for Economic Cooperation and Development:

• Canada’s economy is expected to grow only by 0.7 % this year and in 2026, compared to the previous 2 % expectations for both years.
• Mexico is now expected to shrink by 1.3 % this year and reduce 0.6 % next year, instead of growing by 1.2 % and 1.6 % as expected previously.
• The growth growth in the United States was also reduced, with 2.2 % growth of this year and 1.6 % in 2025, a decrease from previous expectations by 2.4 % and 2.1 %.
• Although the United States, which imposes a customs tariff on China, has increased the Organization for Economic Cooperation and Development from its growth expectations for the country to 4.8 % a little.

The Organization for Economic Cooperation and Development said that the developing trade war is scheduled to increase inflation, which means that interest rates are likely to remain higher for a longer period.

“There are still great risks,” warned about it. “More fragmentation of the global economy is a major concern.

“The highest and broadest increases in commercial barriers will reach growth around the world and add to inflation.”

As for the global economy, the growth will slow from 3.2 % in 2024 to 3.1 % in 2025, to a large extent as a result of commercial tensions.

He also said that he expects inflation – the rate of price increases – to continue to slow down, albeit as not as much as it was previously expected.

The organization predicts an enlarged 3.8 % this year across 20 of the world’s largest economies, compared to 3.5 % of the previously expected.

Last week, Illon Musk has warned Tesla It, and other American exporters can be affected by the commercial battle.

In a letter to the American trade representative, the company said that the American exporters “are subjected to impartial monuments” if other countries choose from the Trump tariff.

OECD reduced its growth forecast for the UK economy to 1.4 % in 2025, from its previous 1.7 % and 1.2 % expectations in 2026, a decrease from 1.3 %.

However, the expectations are more optimistic than the Bank of England, which earlier this month reduced the US growth expectations from 2025 to 0.75 %.