Seoul: A South Korean state-run economic think tank on Thursday revised down its outlook for global economic growth to 3 percent for next year, reflecting concerns about the potential impact of U.S. President-elect Donald Trump's proposed policies on tariffs and trade. The latest forecast by the Korea Institute for International Economic Policy (KIEP) marked a 0.2 percentage-point drop from its projection presented in May. According to Yonhap News Agency, the figure is more pessimistic than recent forecasts by other international institutions, including the Organization for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF), both of which have projected a 3.2 percent growth rate. During his campaign, Trump emphasized an "America First" stance, pledging to impose a minimum 10 percent tariff on all imported goods, with possible increases to 20 percent, and suggesting as high as 60 percent tariffs on imports from China. The think tank said some of Trump's policy commitments c ould begin to affect global and Chinese economic growth as early as next year. However, Lee Si-wook, chief of KIEP, commented that it is more likely for any tariff increases to begin taking effect in 2026. "Global trade volumes could dramatically decrease if (the Trump administration) imposes 10-20 percent tariffs," Lee said. The U.S. economy is forecast to expand 2.1 percent on-year in 2025, the institute said. Its latest outlook for next year marks a 0.4 percentage-point gain from its previous projection made six months earlier. "The U.S. economy is expected to perform relatively strong compared to other countries next year," the report said. Meanwhile, KIEP revised down growth forecasts for many other countries, including China. China's economy is now expected to grow 4.1 percent next year, a 0.4 percentage-point decrease from KIEP's previous forecast from May, primarily due to weaker domestic demand. The think tank also lowered its growth outlook for the European Union, now expecting 1.3 percent growth in 2025, instead of the 1.6 percent expansion forecast earlier. The institute kept its growth outlook for Japan steady at 1 percent. In a separate report, the Korea Development Institute (KDI), another state-run think tank, predicted that the South Korean economy would grow 2 percent next year, a 0.1 percentage-point drop from its previous estimate of 2.1 percent made in August.