The World Bank says tariffs will hurt global growth, estimating that the trade war will shave almost half a percentage point from world GDP growth this year.

The U.S. economy, which is the largest one in the world, is predicted to grow half as fast in 2025 than it did in 2024, with a drop from 2.8 percent growth to 1.4 percent growth, according to the report.

President Donald Trump’s turbulent tariff policy is projected to cause a sharper slowdown in economic growth in the United States and around the world than previously expected, the Organization for Economic Co-Operation and Development (OECD) found in a Tuesday report.