The World Bank says tariffs will hurt global growth, estimating that the trade war will shave almost half a percentage point from world GDP growth this year.

The U.S. economy, which is the largest one in the world, is predicted to grow half as fast in 2025 than it did in 2024, with a drop from 2.8 percent growth to 1.4 percent growth, according to the report.

US consumer inflation ticked up in May, in line with analyst expectations, government data showed Wednesday as President Donald Trump's sweeping tariffs began to ripple through the world's biggest economy.

Inflation was tame in May, defying fears that the impact of President Trump’s tariffs would start to show a rise in prices. Consumer prices rose 0.1% in May over the previous month, less than economists anticipated.

U.S. inflation rose 0.1% in May, less than expected despite concerns about Trump's tariffs. The President also says a trade deal with China is "done" but “subject to final approval.” NBC News Senior Business Correspondent Christine Romans and Axios Senior Economics Reporter Courtenay Brown join Christina Ruffini to break down the implications.