Wed Apr 30 13:04:45 UTC 2025: ## US Economy Contracts for First Time in Three Years Amidst Trump’s Trade Policies
**New Delhi, April 30, 2025** – The United States economy experienced its first contraction in three years during the first quarter of 2025, shrinking at a rate of 0.3% annually. This downturn, reported today, is attributed to a surge in imports driven by businesses attempting to preempt the impact of President Donald Trump’s extensive tariffs.
While business investment saw a significant 21.9% increase, the overall GDP growth was significantly hampered by a 5 percentage point decrease due to imports and a sharp slowdown in consumer spending. Federal government spending also plummeted by 5.1%. However, a key measure of underlying economic strength, excluding volatile factors, showed a healthy 3% annual growth rate.
Economists point to President Trump’s erratic trade policies, including substantial tariffs on Chinese goods, as major contributing factors to the economic slowdown. These policies have reportedly paralyzed businesses and created concerns about rising prices and consumer hardship. The contraction follows a period of steady growth under previous administrations, despite higher interest rates aimed at curbing inflation. The long-term impact of these economic shifts remains to be seen.
First Piper 