US Economy Shrinks 0.3% in Q1 2025; Trump Blames Biden

The US economy contracted by 0.3% in the first quarter of 2025, marking the first decline in three years amid heightened trade tensions and fears of recession. President Donald Trump attributed the downturn to economic conditions inherited from Joe Biden, insisting the contraction was unrelated to his administration's new tariffs and urging Americans to remain patient for an anticipated economic boom. Trump emphasized that the negative economic numbers were a result of Biden's tenure and that tariffs would eventually stimulate growth by encouraging companies to move operations to the US. Meanwhile, the Department of Commerce cited a rebound in imports, slowing consumer spending, and reduced government expenditures as reasons for the GDP decline, which also triggered a drop in major stock indices. Analysts had forecast slight economic growth, so the contraction surprised many and drew criticism from Democrats, who blamed Trump's aggressive tariff policies for disrupting previous growth. Despite the setback, Trump remained optimistic about future economic prospects.