Trump's Tariff Shock: US Growth Forecast Plummets

President Trump's Steel and Aluminum Tariffs to Slow US Economic Growth, OECD Warns Washington, D.C. – In a move that has sent ripples through global markets, President Trump signed an executive order on June 4, 2025, doubling tariffs on steel and aluminum imports to 50%. The decision, effective immediately, is aimed at protecting American manufacturers from what the administration considers unfairly low-priced foreign competition. However, the Organization for Economic Cooperation and Development (OECD) has warned that this protectionist measure will significantly hinder US and global economic growth. "The tariffs are designed to counteract low-priced foreign steel and aluminum," stated an ABC7 Chicago news report, summarizing the White House's position. The report further highlighted the OECD's prediction of a substantial reduction in domestic growth this year, from 2.2% (forecast in March) to a mere 1.6%. The OECD also forecasts a further slowdown to 1.5% in 2026. The ABC7 report included footage of President Trump announcing the policy in Pittsburgh last week, underscoring the political context of the decision. The contrast between the administration's stated goal of protecting American jobs and the OECD's pessimistic forecast of slowed economic growth creates a compelling narrative. The potential negative impact on global trade and the resulting economic uncertainty remain significant concerns.