U.S. Economy Shrunk In 1st Quarter Due To Tariffs

The new report by the Bureau of Economic Analysis shows the U.S. economy contracted in the first three months of 2025 by an annualized rate of 0.3 percent fueling recession fears. Economists surveyed by Dow Jones said they’d expected a gain of 0.4% after GDP rose by 2.4% in the fourth quarter of 2024. #nope This is the first time the U.S. economy has shrunk since the first quarter of 2022.

Maria Bartiromo breaks news to her viewers that GDP contracted in the first quarter and it sounds like she’s announcing the JFK assassination

[image or embed] — Aaron Rupar (@atrupar.com) April 30, 2025 at 6:12 AM

From the Washington Post:

This economic slowdown came primarily from a dramatic increase in imports — which count against GDP — as businesses rushed to purchase foreign goods ahead of President Donald Trump’s promised tariffs.

A drop in government spending also weighed on growth, and separately, consumer spending slowed, especially compared with recent months, as Americans hit the brakes on large purchases.

For the record – a recession is defined as two consecutive quarters of GDP contraction. We’ll see if that is the case here at the end of June. Read more here.

It’s official: Donald Trump has finally liberated the American economy—from growth. GDP shrank by 0.3%. Making Recessions Great Again.

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— Ritchie Torres (@ritchietorres.bsky.social) April 30, 2025 at 6:15 AM

Donald Trump characteristically tried to place the blame on former President Joe Biden, writing on his Truth Social account,”This is Biden’s Stock Market, not Trump’s.” But back in January, right after being sworn into office, Trump claimed “THIS IS THE TRUMP STOCK MARKET.”