World Bank Admits to Being Tariff-ied On Global Growth—Killing U.S. Growth Forecast…

Well, I hope you weren’t making big summer plans for the U.S. economy, because the World Bank just round housed our a$$es straight into the Potomac (read: killed America’s growth forecast). Simply put, the latest “Outlook for the Global Economy” reads like an argument with my wife: the problem isn’t just you, but it’s definitely mostly you. 

(Source: Giphy) 

The headline: U.S. growth is about to get sliced in half… from 2.8% in 2024 down to a limp bizkit 1.4% in 2025, according to the World Bank’s latest mood-killer. And if you’re wondering who to thank, go ahead and send a fruit basket to President Trump’s tariff policies, which have apparently decided that global prosperity is for quitters (kinda kidding, kinda not). 

As for the World Bank’s thoughts, they aren’t mincing words. For instance, their chief economist, Indermit Gill, just informed everyone that “global growth prospects have deteriorated”... which basically means “we’re all about to feel like Blockbuster in 2010.” The entire planet was expected to chug along at a mediocre-but-manageable 2.7%, but now it’s getting knocked down to 2.3% this year and a whopping 2.4% in 2026. I know, try to contain your excitement. 

(Source: Wall Street Journal) 

However, the U.S. is getting the worst of it. The bank’s January forecast had America’s GDP growing at 2.3%. Now? Slashed to 1.4% for 2025. Bigly. Over across the Atlantic, other economies aren’t exactly throwing dolla’ bills either. Mexico is now on pace for a truly heroic 0.2% growth in 2025 (down from 1.5%... oof). While the Eurozone and Japan are still down. India, however is still growing, but basically at the pace of switching from Red Bull to green tea. China managed to dodge the downgrade, mostly because Beijing’s favorite hobby (read: government spending) keeps bailing out the party. 

Oh, and just to keep things interesting, the World Bank threw a little doom spiral scenario into the mix: If tariffs go up another 10 percentage points (not exactly a stretch given the track record), global growth would nosedive to 1.8% this year and 2% in 2026. The report’s language gets weirdly apocalyptic… things like “trade seizing up,” “collapse in confidence,” “turmoil in financial markets.” Overexaggerate, much? 

(Source: Reuters) 

To be fair, the World Bank did toss Trump a sympathy bone, admitting the U.S. used to get hosed on trade compared to what it charged others, and suggesting the rest of the world should maybe drop their tariffs too. (Spoiler: nobody’s holding their breath for this). Meanwhile, Donnie Politics is going to Donnie Politic. The White House, of course, is acting like the World Bank and OECD are a bunch of Chicken Littles, claiming the “doomsday prognostications” are untethered to reality. Which to be fair, so was the Fyre Festival, and we all know how that turned out LOL. 

So what to do with this? Well nothing, other than the fact that you must understand that tariff escalation means higher costs for importers (corporate margins get shrink-wrapped), exporters get their lunch money stolen, and commodity prices get kicked in the shins. Investors should expect more volatility, weaker earnings guidance from big multinationals, and… if this keeps up… a solid chance at a globally synchronized slowdown. 

(Source: Giphy) 

In the end, as the World Bank oh so dramatically summed it up: “The developing world is becoming a development-free zone.” (Read: Get used to the disappointment, kids). Translation: The last time the World Bank sounded this bleak, Greece was inventing new ways to fudge budget numbers. Lawd help us. In the meantime, this could all be over dramatic nothings whispered into the financial mainstream media, or it could be foreshadowing economic hell. Regardless, keep your head on the swivel and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.