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Tariffs Threaten Growth: Inflation and Costs Set to Rise

10/8/2025

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Summary

Story summary

The World Trade Organization forecasts 0.5% growth in 2026 due to tariffs.
Global business leaders stay optimistic on trade; 56% expect growth in 3-5 years.
KPMG study: 66% of U.S. firms will pass tariff costs to consumers; 71% expect 15% hikes.
Rising tariffs add 0.3-0.4 percentage points to inflation.
Experts warn tariffs could fragment the global trading system, raising costs.

History

Historical Context

The World Trade Organization (WTO) was established on January 1, 1995, following the 1994 Marrakesh Agreement, which succeeded the General Agreement on Tariffs and Trade (GATT) created in 1948. The WTO aimed to reduce trade barriers and enhance global trade, which grew by 7% annually post-1994. However, rising tariffs threaten these gains, with 66% of U.S. firms planning to pass costs to consumers.

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Story summary

The World Trade Organization forecasts 0.5% growth in 2026 due to tariffs.
Global business leaders stay optimistic on trade; 56% expect growth in 3-5 years.
KPMG study: 66% of U.S. firms will pass tariff costs to consumers; 71% expect 15% hikes.
Rising tariffs add 0.3-0.4 percentage points to inflation.
Experts warn tariffs could fragment the global trading system, raising costs.

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