President Donald Trump's tariff hikes will drag down growth in Canada, Mexico and the United States while driving up inflation, the OECD forecast on Monday, cutting its global economic outlook and warning that a broader trade war would sap growth further.

President Donald Trump has promised a massive escalation of his global trade war on April 2, when far-reaching tariffs will be imposed on nations around the world

President Donald Trump has launched an all-out trade war, hitting imports from Canada, Mexico, the European Union, and China with massive tariffs. The goal? Reshaping the U.S. economy and forcing other nations to negotiate on his terms.

The Organisation for Economic Co-operation and Development has cut its outlook for the U.S. and the global economy this year and next, citing "higher trade barriers" that are putting pressure on growth.

Growth outlooks in the United States and several other countries are projected to slow this year and next, as uncertainty on trade and economic policy takes their toll.

The U.S. economic growth outlook — and even more so, Canada’s and Mexico’s — was lowered on Monday by the Organization for Economic Cooperation and Development due to policy uncertainty and the possible impact from tariffs.