US economic growth forecast cut sharply due to higher tariffs
1. OECD cuts U.S. growth forecast to 1.6% in 2025 and 1.5% in 2026. 2. Higher tariffs contribute to slower growth and increased inflation projections. 3. Policy uncertainty increases risks to economic activity, affecting investor confidence. 4. Tariffs raise effective rates significantly, impacting consumer prices and income. 5. Federal budget deficits expected to exceed 8% of GDP by 2026.