Tariffs Threaten Global Growth In 2026, OECD Warns

Benzinga

The OECD cut forecasts, warning U.S. growth will slow to 1.5% in 2026 as tariffs rise to the highest since 1933. Global GDP is also set to weaken, while inflation stays near 3% and high debt adds fiscal risks.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02The Organization for Economic Cooperation and Development reports slower U.S. and global growth,

00:07warning of weaker 2026 due to tariffs, according to the Wall Street Journal.

00:11The OECD now projects U.S. GDP will expand 1.8% in 2025 before slowing to 1.5% in 2026.

00:18Global GDP is forecast to grow 3.2% this year, then dip to 2.9% in 2026.

00:24The OECD noted the effective U.S. tariff rate climbed to 19.5% in August.

00:29It's high since 1933 and expects inflation to average 3% in 2026.

00:35The OECD said the full impact of higher U.S. tariffs has been delayed

00:38as companies use inventories, profit margin, timing lags, and transit exemptions to cushion the effects.

00:44The group said the Federal Reserve will likely file September's rate cut with another later this year, and two in early 2026.

00:50President Trump has pushed the Fed to cut rates faster,

00:52while the OECD warned that central banks with compromised independents risk losing low and stable inflation.

00:58The OECD warned that high net levels in advanced economies like the U.S.

01:02pose fiscal risks if growth slows further.

01:04For all things money, visit Benzinga.com.

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