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 escalated his trade war Tuesday, announcing on Truth Social that he will double the tariffs on steel and aluminum coming from Canada from 25% to 50% in retaliation for new trade restrictions put in place by the province of Ontario this week.

The president imposes 25% steel and aluminum tariffs in an effort to revive US manufacturing, though it may drive up prices for Americans instead

Donald Trump’s trade war is taking a “significant toll” on the global economy, the OECD has warned, as it cut growth forecasts for a dozen G20 countries. Global growth will slow this year and next, from 3.

US President Donald Trump’s aggressive trade policies have abruptly set the world onto a path of slower growth and higher inflation that could worsen notably if tensions escalate, the OECD said.