The U.S. economy contracted at a 0.2% annual rate in the first quarter of 2025, marking the first decline in three years, according to the Associated Press. The drop was attributed to business disruptions caused by President Donald Trump’s trade wars, according to a revised government estimate. A surge in imports, as U.S. companies rushed to stock up ahead of impending tariffs, reduced first-quarter growth. The U.S. economy reversed a 2.4% gain from the fourth quarter of 2024 with a GDP decline in Q1 2025, driven by a 42.6% surge in imports. The import spike cut over five percentage points from growth, while consumer spending slowed sharply.
