US GDP fell at an annual rate of 0.3 per cent in the first quarter, after growth of 2.4 per cent in the last months of 2024
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The US economy unexpectedly contracted in the first three months of the year on an import surge triggered by Donald Trump’s tariff plans, although the president pinned the blame squarely on his predecessor.
The sharp increase in imports was a reflection of businesses and consumers stockpiling foreign goods to get ahead of Trump’s sweeping trade levies, which went into effect earlier this month.
All three major Wall Street indices fell on the economic news, before paring losses to close mixed, while oil prices extended their losses.
At a cabinet meeting in Washington, Trump insisted the growth downturn was the legacy of former president Joe Biden’s policies.
“That’s Biden, that’s not Trump,” he said.