Trump’s Tariffs Are Dragging Down Global Growth, OECD Warns
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A boat passes by the Long Beach port in California in May.
Photographer: Tim Rue/BloombergUS President Donald Trump’s combative trade policies are hurting global economic growth, with the US among the hardest hit, according to the OECD. The Paris-based organization slashed its outlook for the second time this year, forecasting global growth to slow to 2.9% from 3.3% in 2024, suggesting the world is heading for its weakest growth since the global pandemic.
The White House has said Trump and Chinese President Xi Jinping are likely to speak this week, but China hasn’t confirmed such plans, and there are few signs of a breakthrough. Former acting White House Chief of Staff Mick Mulvaney said a deal may hinge on Trump and Xi overcoming key differences in their negotiation styles. “There’s a fundamental disconnect here,” Mulvaney told Bloomberg TV. “Trump wants to talk at the very highest levels. That’s not always how the Chinese want to do business.”
If a call does materialize, it would be their first known conversation since January, before Trump’s inauguration. Beijing has claimed Washington “seriously undermined” a recent truce while the Trump administration has accused China of dragging its feet on lifting export controls on rare earths, barbs which have threatened to undo a fragile detente.