US growth cut as tariffs begin to bite

Experts attribute slowdown to policies that are dampening economic outlook

The signs of strain in the US economy once again became apparent on Tuesday when the Organisation for Economic Co-operation and Development slashed the country's 2025 growth forecast to 1.6 percent from its March prediction of 2.2 percent.

This downgrade followed revised figures released last week by the US Department of Commerce that showed the US economy contracted at an annualized rate of 0.2 percent in the first quarter of 2025 — a first since 2022.

Experts attributed the economic slowdown to the US administration's unpredictable tariff policies that have been driving up costs and dampening the country's economic outlook.