Trump blames Biden after US economy shrinks in first 3 months of his presidency

The US economy unexpectedly contracted in the first three months of this year, according to fresh data published Wednesday, due largely to a surge in imports ahead of the introduction of sweeping tariffs by President Donald Trump.

The gross domestic product of the world’s largest economy decreased at an annual rate of 0.3 per cent in the first quarter, after growing 2.4 per cent in the final months of 2024, according to an estimate from the US Commerce Department.

Wednesday’s data was sharply below the market consensus estimate of 0.4 per cent growth, according to Briefing.com.

“The downturn in real GDP in the first quarter reflected an upturn in imports, a deceleration in consumer spending, and a downturn in government spending,” the Commerce Department said in a statement.

US financial markets reacted negatively to the news, with futures indices falling before stock markets opened on Wall Street.

“100 days into his presidency, Donald Trump’s red-light, green-light tariffs are shrinking our economy, with businesses stockpiling imports in anticipation of tariff doomsday,” Democratic Senator Elizabeth Warren said in a statement after the GDP data was published.