GDP fell 0.3%.
Transcript:
After a strong final quarter of 2024 that saw gross domestic product rise by 2.4%, the U.S. economy shrank during President Trump’s first quarter back in office. According to the latest report by the Commerce Department, GDP fell 0.3% from January to March. This marks the country’s first quarter of negative growth since Q1 of 2022.
The biggest culprit comes as no surprise, with tariffs at the top of the list of reasons for the economic contraction. Despite the tariffs not being officially implemented until after Q1 ended, many businesses tried getting ahead of the new import taxes by front-loading their orders.
However, according to Trump, his predecessor, Joe Biden, is to blame for the Q1 numbers. Trump wrote on Truth Social, “This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!”
Now, as the trade war continues, many economists are sounding the alarm on a potential recession. The U.S. is considered to be in a recession after two consecutive quarters of negative growth. Considering we’re already halfway there, many now expect a recession to hit by the second half of year.
That’ll do it for your daily briefing. From New York City, I’m Kelsey Barberio with TheStreet.
Subscribe |
Earn. Live. Invest. |
TheStreet Pro |
#tariff #gdp #economy #trump
source
