US Economy Grows 3% in Q2 Amid Tariff Impact

The U.S. economy grew at an annualized rate of around 3% in the second quarter of 2025, exceeding economists' expectations and reversing a contraction in the first quarter. This growth was driven largely by a turnaround in the trade balance due to President Donald Trump's tariffs, which reduced imports, and a boost in consumer spending that rose by 1.4%. The tariffs initially caused companies to stockpile imports before they took effect, contributing to the prior quarter's GDP decline, but their impact has since coincided with solid economic growth and eased recession fears. Despite the aggressive tariff stance, economic data has remained better than feared, with unemployment near historically low levels and inflation remaining below earlier highs. President Trump hailed the GDP figures as “WAY BETTER THAN EXPECTED” and urged the Federal Reserve to lower interest rates to support further economic activity. Overall, the data suggest that the U.S. economy has largely defied concerns about a tariff-induced downturn, with steady growth continuing amid ongoing trade negotiations and tariff adjustments.