Wed Apr 30 16:42:17 UTC 2025: **Trump’s Trade Policies Cause Economic Slowdown, White House Asks for Patience**
WASHINGTON D.C. – The US economy contracted by 0.3 percent in the first quarter of the year, marking the first decline in three years. President Donald Trump, blaming the downturn on his predecessor Joe Biden’s economic policies, urged patience as his own aggressive trade measures begin to impact the market.
Trump’s administration has implemented significant tariffs, disrupting global trade and causing uncertainty among businesses. While the White House press secretary, Karoline Leavitt, attributed the current economic slowdown to the “leftovers of Biden’s economic disaster” and claimed “strong economic momentum,” many economists point to the president’s tariff policies as the primary culprit. The S&P 500 has fallen by approximately 7.3 percent since Trump took office.
The first quarter saw a surge in imports as businesses attempted to preemptively mitigate the impact of future tariffs. While inflation is easing, fears of an escalating trade war persist. The White House has hinted at potential tariff reductions with key trading partners like China, acknowledging that current levels may not be sustainable.
However, experts remain skeptical. Carl Weinberg, chief economist at High Frequency Economics, predicts that while a rebound might occur in the second quarter due to reduced pre-buying, the long-term impact of Trump’s trade policies – including increased uncertainty and the effect of tariffs acting as a tax on imports – will likely lead to further economic contraction by year’s end. The situation highlights the complex and potentially damaging effects of Trump’s attempt to reshape the global trade system.
First Piper 