Donald Trump’s trade war is taking a “significant toll” on the global economy, the OECD has warned, as it cut growth forecasts for a dozen G20 countries.
Canada and Mexico are forecast to see the biggest impact as they have had the harshest tariffs imposed on them, but U.S. growth is also expected to be hit.
The OECD has more than halved its growth outlook for Canada for this year and next, while it expects Mexico to be pushed into a recession.
Trump has imposed 25% tariffs on all steel and aluminum imports. The U.S. has also imposed 25% tariffs on other imports from Mexico and Canada – with some exemptions – and a 20% levy on Chinese goods.
In response, Canada and the EU have both announced retaliatory tariffs, the BBC said.
