OECD Warns Tariffs Could Rattle 2026 GDP Outlook

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  • GDP growth slowed from 3.3% in 2024 to 3.2% in 2025

  • It is projected to fall further to 2.9% in 2026

  • A “small rebound” may lift global growth to 3.1% in 2027

The Paris-based organization also pointed to a sharp long-term structural decline among its own member states, noting that potential GDP per-capita growth now sits at 1.4%, compared with 2.2% in the late 1990s.

U.S. Tariffs Front and Center — and Now Facing Legal Heat

Trump Administration Battles Suits Over Trade Strategy

The economic forecast comes just weeks after the OECD projected that U.S. growth would slow from 1.8% in 2025 to 1.5% in 2026, driven largely by tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act.

Those same tariffs have sparked multiple lawsuits, adding a legal dimension to the trade tensions. Earlier this month, the U.S. government told the Supreme Court that the IEEPA grants the president broad authority to regulate imports—including using tariffs as leverage in international disputes.

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The combination of legal uncertainty, trade retaliation and ongoing geopolitical rigidity has created what analysts describe as an economic “pressure chamber,” building toward what could be a decisive year for the global economy.