As the U.S. prepares to impose tariffs on steel and aluminum imports, a world economic watchdog is warning that such barriers will hurt economic growth globally.
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The Organization for Economic Co-operation and Development, a policy adviser to developed economies, said Tuesday that “trade protectionism remains a key risk that would negatively affect confidence, investment and jobs.”
In an update to its forecasts, it said that preserving “the rules-based international system is essential to prevent the longer-term harm to growth prospects that could arise from a retreat from open markets.”
The statement was a veiled reference to U.S. President Donald Trump’s decision to impose tariffs without resorting to international arbitration.
The OECD expects world economic growth to accelerate to 4 percent this year and next, from 3.7 percent in 2017.
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