The United States economy shrank by 0.3% during the first quarter of the year, as businesses scrambled to import goods ahead of a new round of tariffs expected under President Donald Trump’s trade policies.
The slowdown marks a rare contraction, with rising imports cited as a key factor behind the weaker numbers.
The decline took place before the full announcement of Trump’s most extensive tariffs, suggesting that fear and uncertainty among companies led many to stockpile materials early. Economists observed a sharp rise in imports—up more than 41%—as firms rushed to get ahead of the expected rise in costs. While this surge in trade activity inflated short-term imports, it also created an imbalance that dragged overall growth into negative territory.
The data release came just as Trump reached his 100th day back in office. He dismissed concerns over the economic dip, pointing the finger at what he called the “Biden overhang.” In a message on social media, he insisted the poor numbers had nothing to do with his tariffs and said the economy is on track for a major recovery. He pointed to record-setting business moves into the U.S. and urged Americans to be patient, calling for trust in his long-term vision.
While critics like New York Congressman Ritchie Torres used the figures to question the administration’s economic policies, other voices urged caution. Some economists argue that the downturn may be temporary. With the rush to import now cooling, they expect import levels