US Economy Contracts 0.3% Amid Trade Disruptions

The US economy contracted by 0.3% in the first quarter of 2025, marking its first decline since the first quarter of 2022. The gross domestic product (GDP) decrease was primarily driven by a 5% drop in imports.

Imports have been affected by President Trump's tariffs, which were implemented earlier this month as a global 10% duty on most goods entering the country. This is not the first time concerns about the impact of tariffs on economic growth have been raised - some economists have expressed worry that they could slow down the economy.

Consumer spending on goods and services also declined compared to late 2024, while business investment saw an uptick in nonresidential equipment and structures. The mixed signals may fuel speculation about whether the US economy will enter a recession.

"When the boom begins, it will be like no other. BE PATIENT!!!"

This quote is attributed to President Trump, who was not directly responding to the new data but did address concerns about tariffs having an impact on economic growth.