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U.S. economic growth will slow to 1.6% this year from 2.8% last year as President Donald Trump’s erratic trade wars disrupt global commerce, drive up costs and leave businesses and consumers paralyzed by uncertainty.The Organization for Economic Cooperation and Development forecast Tuesday that the U.S. economythe world’s largestwill slow further to just 1.5% in 2026. Trump’s policies have raised average U.S. tariff rates from around 2.5% when he returned to the White House to 15.4%, highest since 1938, according to the OECD. Tariffs raise costs for consumers and American manufacturers that rely on imported raw materials and components.World economic growth will slow to just 2.9% this year and stay there in 2026, according to the OECD’s forecast. It marks a substantial deceleration from growth of 3.3% global growth last year and 3.4% in 2023.The world economy has proven remarkably resilient in recent years, continuing to expand steadilythough unspectacularlyin the face of global shocks such as the COVID-19 pandemic and Russia’s invasion of Ukraine.But global trade and the economic outlook have been clouded by Trump’s sweeping taxes on imports, the unpredictable way he’s rolled them out and the threat of retaliation from other countries.Reversing decades of U.S. policy in favor of freer world trade, Trump has levied 10% taxestariffson imports from almost every country on earth along with specific duties on steel, aluminum and autos. He’s also threatened more import taxes, including a doubling of his tariffs on steel and aluminum to 50%.Without mentioning Trump by name, OECD chief economist Álvaro Pereira wrote in a commentary that accompanied the forecast that “we have seen a significant increase in trade barriers as well as in economic and trade policy uncertainty. This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back trade and investment.”Adding to the uncertainty over Trump’s trade wars: A federal court in New York last week blocked most of Trump’s tariffs, ruling that he’d overstepped his authority in imposing them. Then an appeals court allowed the Trump administration to continue collecting the taxes while appeals worked their way through the U.S. courts.Chinathe world’s second-biggest economyis forecast to see growth decelerate from 5% last year to 4.7% in 2025 and 4.3% in 2026. Chinese exporters will be hurt by Trump’s tariffs, hobbling an economy already weakened by the collapse of the nation’s real estate market. Some of the damage will be offset by help from the government: Beijing last month outlined plans to cut interest rates and encourage bank lending as well as allocating more money for factory upgrades and elder care, among other things.The 20 countries that share the euro currency will collectively see economic growth pick up from 0.8% last year to 1% in 2025 and 1.2% next year, the OECD said, helped by interest rate cuts from the European Central Bank.The Paris-based OECD, comprising 38 member countries, works to promote international trade and prosperity and issues periodic reports and analyses. Paul Wiseman, AP Economics Writer
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E-Commerce
The U.S. Food and Drug Administration said on Monday that it had launched a generative AI tool, Elsa, aimed at improving efficiency across its operations, including scientific reviews. “Today’s rollout of Elsa is ahead of schedule and under budget, thanks to the collaboration of our in-house experts across the centers,” said FDA Commissioner Marty Makary. The agency said it is already using Elsa to expedite clinical protocol reviews, shorten the time needed for scientific evaluations, and pinpoint high-priority inspection targets. Once the FDA receives an application for a potential drug approval, it has six to 10 months to make a decision. Elsa assists with reading, writing, and summarizing tasks. It can summarize adverse events to support safety profile assessments of drugs and rapidly compare packaging inserts. “Elsa offers a secure platform for FDA employees to access internal documents while ensuring all information remains within the agency. The models do not train on data submitted by regulated industry, safeguarding the sensitive research and data handled by FDA staff,” the FDA said. In May, the regulator said it would fully integrate AI by June 30, following an experimental run. Puyaan Singh, Reuters
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E-Commerce
One of the most popular auto repair and tire shops in America said it will shutter 145 locations across the country by the end of the month. Monro Inc. (Nasdaq: MNRO) announced the move in its fourth-quarter fiscal 2025 results last week. Heres what you need to know about the Monro auto chain closures. What is Monro? Monro, sometimes called Monro Muffler Brake, is one of the largest auto repair shops and tire chains in the country. The company operates 1,260 stores across 32 states, according to its most recent financial filings and website. It also has 48 franchised locations. Monro says it generated approximately $1.2 billion in sales from those stores and works on about five million vehicles a year in the U.S. Founded in 1957, Monro became a publicly traded company in 1991. It is listed on the Nasdaq under the ticker MNRO. In recent years, the company has struggled as consumers have cut back on discretionary auto-related spending in the wake of inflationary costs. As noted by CoStar News, those consumers have reduced their purchases of tires and auto services, which typically have higher margins, thus eating into Monros profits. In March, Monros board decided a change in leadership was necessary. That change saw Monros then-CEO Michael Broderick depart the company, replaced by AlixPartners managing director Peter Fitzsimmons. Upon announcing the companys Q4 2025 resultsthe quarter that ended March 29, 2025Fitzsimmons announced that Monro would be closing 145 underperforming stores. Monros closing stores and closure dates identified In its earnings release, the company said it had conducted a comprehensive store portfolio review that identified 145 underperforming stores for closure. It went on to note that all 145 stores would close by the end of Q1 of 2026, which is Monro’s current quarter and which closes at the end of this month. However, while Monro says it has identified the closing stores, it has not released a list of which locations are closing. It has also not stated which of its store brands will be affected. Reached for comment by Fast Company, a Monro spokesperson said the retailer’s priority at the moment is to ensure that employees impacted by the closures are properly supported. “We have communicated this news directly with our impacted teammates and are deeply grateful to them for their dedication and commitment to the communities we serve,” the spokesperson said. “We are focused on supporting our teams through this transition and growing our business by continuing to deliver a five-star customer experience to our guests around the country.” Monro doesnt operate all of its 1,260 stores under a Monro moniker. It has more than a dozen brands: Monro Auto Service and Tire Centers Tire Barn Warehouse Tire Warehouse Ken Towery’s Tire & Auto Care Allen Tire Company Monro Commercial Solutions Car-X Tire and Auto Mr. Tire Auto Service Centers Tire Choice Auto Service Centers Free Service Tire Company, Inc. Mountain View Tire & Auto Service Skips Tire Lloyds Tire Calabasas Car Care Buds Tires Monro is also not the only large auto-related chain that is reducing its physical footprint. Late last year, Advanced Auto Parts said it would close 700 of its 5,000 stores. Monros Q4 2025 results and stock price For its most recent quarter, Q4 of fiscal 2025, which ended on March 29, Monro reported $295 million in sales. That was down 4.9% from the $310.1 million in sales during the same quarter a year earlier. However, Monro said that 2025s Q4 had six fewer selling days than 2024s Q4, which contributed to the lower sales number. The company said it had a net loss for Q4 2025 of $21.3 million versus a net gain of $3.7 million for the quarter a year earlier. As I reflect on my first eight weeks, Im pleased with our detailed assessment of the business,” Fitzsimmons said in a statement accompanying the results. “We have identified four key areas of focus as opportunities for improvement. Fitzsimmons said he believes the plan will “drive enhanced profitability” while increasing operating income. Since announcing its Q4 2025 results and store closure plans on May 28, MNRO stock has surged more than 23%. However, the stock is down more than 37% year to date. Over the past 12 months, MNRO shares have fallen 34%.
Category:
E-Commerce
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