Trump’s escalating trade tariffs will hit world growth and raise inflation, the OECD has predicted. Canada and Mexico are forecast to see the biggest impact as they have had the harshest tariffs imposed on them, but US growth is also expected to be hit. …Trump has imposed 25% tariffs on all steel and aluminium imports. The US has also imposed 25% tariffs on other imports from Mexico and Canada – with some exemptions – and a 20% levy on Chinese goods. Canada and the EU have announced retaliatory tariffs. …Canada’s economy is predicted to grow by just 0.7% this year and in 2026, compared with the previous forecast of 2% for both years. Mexico is now forecast to contract by 1.3% this year and shrink a further 0.6% next year, instead of growing by 1.2% and 1.6%. Growth in the US has also been downgraded, with growth of 2.2% this year and 1.6% in 2025, down from previous forecasts of 2.4% and 2.1% China’s growth forecast will fall slightly to 4.8%.