PARIS: The OECD warned Wednesday that protectionist trade measures pose a major risk to disrupting the world economy, just weeks before Donald Trump is set to return to the White House.
The Organisation for Economic Cooperation and Development, a Paris-based body that advises industrialised nations on policy matters, never named Trump in its updated analysis of the world economy.
But with the president-elect vowing to slap tariffs on US trading partners after his return to power next month, it was abundantly clear that the OECD was warning about Trump’s possible measures.
While the organisation raised its 2025 global growth forecast to 3.3 percent, it cautioned that “greater trade protectionism, particularly from the largest economies” poses a “downside risk” along with geopolitical tensions and high public debts.
On the campaign trail, Trump threatened blanket tariffs of at least 10 percent on all imports and since his election has vowed to slap 25 percent import tariffs against Canada and Mexico, top US trade partners.
“Increases in trade-restrictive measures could raise costs and prices, deter investment, weaken innovation and ultimately lower growth,” the OECD warned in its economic outlook.
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