BREAKING: U.S. Economy Shrinks 0.3% in Q1 — Trump Blames Biden, Not Tariffs

“BE PATIENT!!! THE BOOM IS COMING!” – President Trump

Economic Shock:

The U.S. economy contracted by 0.3% in the first quarter of 2025 — the first dip since early 2022, raising recession concerns. This comes after a strong 2.4% growth rate in Q4 of 2024.

Trump Responds on Truth Social:

“This has NOTHING TO DO WITH TARIFFS”

“This is Biden’s Stock Market, not Trump’s.”

“Tariffs will soon kick in, and companies are moving into the USA in RECORD NUMBERS.”

“When the boom begins, it will be like no other. BE PATIENT!!!”

Trump insists the Q1 contraction is a hangover from the Biden era and that his tariff-driven policy will soon trigger an economic surge.

Commerce Department Analysis:

Officials say the Q1 downturn was mainly due to a surge in imports — companies scrambled to stockpile goods ahead of Trump's planned tariff hikes.

This suggests businesses were reacting in anticipation, not due to actual tariffs taking effect yet.

Key Economic Warnings:

This is the first economic contraction in three years

The U.S. now teeters on the edge of a technical recession, defined as two straight quarters of negative growth

Consumer sentiment dropped 32% in April, hitting its lowest level since the 1990 recession

Leading economists estimate a 50% chance of recession in 2025

What’s Next:

Trump is set to host CEOs from major companies including Nvidia and GE Aerospace later today

He will also convene a Cabinet meeting with top advisers

These moves come as he celebrates his first 100 days back in office

Summary:

Despite signs of economic stress and investor worry, President Trump remains confident in his policies and calls for patience. He believes tariffs will trigger a U.S. manufacturing revival, while critics warn the policies may be doing the opposite.