The International Monetary Fund has drastically cut its growth projections for this year and 2026, warning of an unsteady economic future over escalating trade tensions.

The U.S. economy will grow 1.8% this year, the IMF said in its World Economic Outlook, down .9% from January and a full percentage point from last year's projection. The global institution does not expect the U.S. to dip into a recession, but said the odds now have risen from 25% to 37%.