The U.S. economy shrank over the initial months of President Donald Trump’s second term as a flurry of tariff proposals stoked uncertainty among businesses and consumers.
U.S. gross domestic product, or GDP, declined at a 0.3% annualized rate over three months ending in March. The figure marked a sharp dropoff from 2.4% annualized growth over the final three months of 2024.
Imports surged more than 40% at the outset of this year as companies rushed inventory into the U.S. ahead of potential tariffs, data showed. By contrast, federal spending fell about 5% over the first three months of 2025.
The decline in GDP “primarily reflected an increase in imports,” as well as a drop-off in government spending, the U.S. Commerce Department said.
The data covers a period before the so-called Liberation Day tariffs went into effect in early April.
Source- ABC
Related Posts
Dominica to implement measures to cushion impact of Middle East war on local economy
Prime Minister Roosevelt Skerrit shared that we are exposed to the economic…
