NextFin news, On Wednesday, September 24, 2025, the Organization for Economic Cooperation and Development (OECD) issued a warning that the tariff war initiated by former U.S. President Donald Trump is contributing to a slowdown in global economic growth. The OECD highlighted that the aggressive tariff measures imposed by the U.S. have disrupted international trade flows and created significant uncertainties for global markets.
The tariff war, which began during Trump's administration, involves the imposition of high tariffs on imports from various countries, including key U.S. allies and economic rivals. These tariffs have led to reciprocal measures from affected countries, further escalating trade tensions and complicating global supply chains.
The OECD's analysis points to the negative impact of these tariffs on global GDP growth, as increased trade barriers raise costs for businesses and consumers, reduce investment incentives, and slow down economic activity. The organization emphasized that the uncertainty generated by the tariff war undermines business confidence and hampers long-term economic planning.
Specifically, the OECD noted that sectors such as manufacturing, agriculture, and technology have been particularly affected by the tariff escalations. The disruption in trade has led to shifts in global supply chains, with companies seeking to diversify sourcing and markets to mitigate tariff-related risks.
Experts also warn that the tariff war has broader geopolitical implications, affecting diplomatic relations and complicating negotiations on trade agreements. For example, India faces steep reciprocal tariffs from the U.S., impacting its exports of gems, jewelry, marine products, and chemicals, while exemptions for pharmaceuticals and electronics remain uncertain.
Despite these challenges, some countries are pursuing strategic responses, including fast-tracking bilateral trade agreements, enhancing supply chain resilience, and focusing on high-value services to offset tariff impacts. India, for instance, is actively negotiating trade deals with the U.S. and other partners to navigate the evolving trade environment.
The OECD's warning comes amid ongoing debates about the future of global trade policies and the balance between protectionism and free trade. The organization calls for multilateral cooperation to reduce trade barriers and restore confidence in the global economic system.
In summary, the OECD's report on Wednesday underscores that Trump's tariff war, by increasing trade tensions and uncertainties, is a significant factor slowing global economic growth as of late September 2025.
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