(NewsNation) — The Organization for Economic Cooperation and Development says higher United States tariffs could lead to “stagflation,” which is a word for slower growth and higher inflation.
Higher United States tariffs on imports are to blame, the organization said, according to The Wall Street Journal. Some of the Trump administration’s tariffs on imported goods from Canada, Mexico and China are already in place, while others take effect in a few weeks.
The United States, the Organization for Economic Cooperation and Development said, will only grow by 2.2% this year, down two-tenths of a percent from their earlier projections.
However, Stephen Moore, a Trump economic adviser in his first term, says if a trade deal can get done, the economy will “turn the corner” and see growth in the second half of the year.
“Trump’s idea here, just so people understand, is that we want to have freer and fairer trade, right?” Moore, currently a senior visiting fellow at The Heritage Foundation, a conservative think thank, said. “That’s going to force other countries to bring their tariffs down.”
