The Organization for Economic Cooperation and Development (OECD) delivered an ominous report about the negative effects President Donald Trump's trade policies will have on Canadian, Mexican and U.S. economic growth and inflation levels. President Trump confirmed the implementation of fresh tariffs during early April while he continued to enforce current steel and aluminum trade barriers.

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The OECD predicts U.S. households must bear significant direct expenses from new import taxes as the economic slowdown caused by these taxes will generate lower revenue compared to the original targets. The OECD predicts that global growth will experience a gradual reduction starting from 2024 until reaching 3.1% in 2025 and 3.0% in 2026 as the organization revises downward its initial projections.

According to OECD estimates the United States will face economic expansion at rates of 2.2% this year and 1.6% next year. International analysts predict that Mexico will face the most drastic economic downturn this year followed by next year when its economy dips 1.3% then 0.6%. The Canadian economic growth projection stands at 0.7% for the next two years.x

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The forecasts about Trump's trade policies show clear evidence of how these measures hurt North American economic expansion as well as diminish both individual and business optimism. The recent data collected by the University of Michigan and the Federal Reserve Bank of New York confirms consumer sentiment has dropped markedly while residents increasingly expect higher inflation.

The tariff declarations made by Trump specifically targeting Chinese imports and threatening restrictions on both Mexican and Canadian goods have generated substantial market instability. Trump executed 25% steel tariffs and aluminum duties while making additional promises to create automobile trade restrictions.

Global stock markets have experienced turmoil because of recent developments that coincided with Canadian officials becoming increasingly dissatisfied with how the Trump administration handles trade discussions. The imposed tariffs are also inconsistent with the USMCA, according to Canadian officials.

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“We're looking at significant tariffs inconsistent with the USMCA (U.S.-Mexico-Canada Agreement on trade) being imposed willy nilly, without regard for the commitments that we have negotiated with the United States," Colin Bird, Consul General of Canada in Detroit, said at an event in the Motor City on Monday. "That is a problem for the United States, not only in its economic relationship with Canada, that's a problem for its credibility in negotiating with the world.”