OECD Warns of Economic Slowdown in France Due to Trump's Tariffs
OECD warns that tariffs from Trump will significantly hinder both France and global economic growth.
Key Points
- • OECD downgrades France's growth forecast from 0.8% to 0.6%.
- • US GDP growth projected to slow to 1.6% in 2025.
- • Effective US tariff rate has surged to 15.4%, highest since 1938.
- • Global economic growth now expected at 2.9% for 2025 and 2026.
On June 3, 2025, the OECD issued a dire warning about the impact of tariffs imposed by former President Donald Trump, highlighting significant negative consequences for the global economy. In its latest report, the OECD revised growth forecasts down for nearly all economies, with a particular focus on the United States, which is facing a projected GDP growth slowdown to 1.6% for 2025 and 1.5% for 2026—down from earlier estimates of 2.2% and 1.6%, respectively. The effective tariff rate on imports to the US has increased dramatically from 2% to 15.4%, marking the highest rate observed since 1938.
As a result of the escalating trade tensions and tariffs, France has also been negatively impacted. The OECD has downgraded France's growth forecast from 0.8% to 0.6%, reflecting increased pessimism regarding its economic outlook. Alvaro Pereira, the OECD's chief economist, pointed out that the tariffs have created a climate of uncertainty, which adversely affects trade, consumption, and investment. With the US being a critical export market for numerous countries, including France, the anticipated global growth rate has also seen a decline. The OECD now estimates global growth at just 2.9% for both 2025 and 2026, a reduction from previous estimates of 3.1%.
The report draws attention to how the ongoing trade conflict between the US and China is further compounding these challenges. Tariffs on Chinese goods have climbed to 30%, continuing to disrupt global supply chains. The OECD highlights that this trade war is more intense than previous years, emphasizing the reduction in bilateral trades and their impact on the global economy.
In conclusion, the OECD's analysis indicates that the rippling effects of Trump's tariffs are significantly slowing economic growth not just in the US, but in France and other nations worldwide. The situation remains under close observation as economic experts continue to assess the broader implications of these ongoing trade policies.