The U.S. economy shrank by 0.3% in the first quarter of this year, according to a report released Wednesday by the Commerce Department. Former President Donald Trump responded by blaming President Biden for the slowdown—not his own tariffs.
Trump took to social media, stating, "This dip has NOTHING TO DO WITH TARIFFS." He urged Americans to stay calm, saying the economy would "boom" once his trade policies are fully in motion. “When it starts, it’ll be like nothing we’ve ever seen. BE PATIENT!!!” he posted.
In a longer post on TruthSocial, Trump stressed that the current market is still under Biden’s influence. “This is Biden’s stock market, not mine,” he wrote. “I officially took over on January 20th. The real impact of tariffs is coming, and more companies are already shifting operations to the U.S. in record numbers. The boom is coming—we just need to shake off Biden’s economic drag.”
Today, Trump is expected to meet with CEOs from top companies like Nvidia and GE Aerospace. He’ll also lead a Cabinet meeting as part of his 100-day milestone in office.
Is the U.S. Headed for a Recession?
This economic drop marks the first contraction since early 2022, and it’s raising concerns. The sharp decline—from a 2.4% annual growth rate in Q4 last year to a 0.3% loss now—has economists on edge.
Experts say the downturn was mainly caused by businesses rushing to import goods before Trump's planned tariff hikes took full effect. Even though those tariffs haven’t been fully implemented yet, this early dip suggests the economy was already slowing.
With two back-to-back quarters of negative growth typically signaling a recession, the U.S. is now dangerously close to that point. On top of that, consumer confidence dropped 32% in April—hitting its lowest level since 1990. Some economists now put the chance of a recession this year at nearly 50%.