The World Bank has warned that U.S. tariffs could slow global economic growth in 2025. They warn that U.S. tariffs of 10% could reduce global economic growth by 0.3% in 2025 if other countries retaliate.

U.S. growth, projected at 2.3% in 2025, could fall by 0.9% due to these tariffs but might increase by 0.4% in 2026 if U.S. tax cuts are extended.

The World Bank’s report forecasts global growth to remain at 2.7% in 2025 and 2026, the same as in 2024, with developing economies facing their weakest growth outlook since 2000.

Developing countries’ growth is expected to reach 4% in 2025-2026, below pre-pandemic estimates, due to high debt, weak investment, and sluggish productivity.

The gap between rich and poor countries is widening, with growth in developing countries lagging behind wealthier economies.

The World Bank highlights trade tensions, high inflation, and uncertainty as key risks for global economic stability.

Global trade is expected to grow by 3.1% in 2025-2026 but will remain below pre-pandemic levels.

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