Economy Shrinks 0.3% in Q1, the First Drop in Three Years
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The U.S. economy shrank 0.3% from January through March, first drop in three years.
It was slowed by a surge in imports as companies in the United States tried to bring in foreign goods before President Donald Trump imposed massive tariffs.
The January-March expansion was the slowest in almost three years and was down from 2.4% in the last three months of 2024. Imports shaved 5 percentage points off first-quarter growth.
Consumer spending also slowed sharply.
GDP drop led by trade - partially due to gold imports. — Kathy Jones (@KathyJones)
Trump inherited a solid economy that had grown steadily despite high interest rates imposed by the Federal Reserve to fight inflation. His erratic trade policies — including 145% tariffs on China — have paralyzed businesses and threatened to raise prices and hurt consumers.
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