President Donald Trump There has been a bad news about the American economy amidst tariff war, which sprinkled the new tariff policy. According to the report of the Department of Commerce, the US GDP declined by 0.3 percent in the first quarter of the year (January-March 2025). This was the first quarter of negative growth since the first quarter of 2022 for the US. The government department said in an official release, “The decline in actual GDP in the first quarter mainly reflects an increase in imports, a cut in the calculation of GDP and lacks government spending.”
Why the decline in American GDP
It was learned through government data that the actual GDP fell at its current level in the fourth quarter of 2024 to its current level. According to the department, the decline in real GDP was due to increase in imports in the Western nation. The report also suggested that consumer expenses were offset with an increase in investment and exports from the US with a decline in government spending.
What Donald Trump said
President Trump said in his post on social media platform Truth Social, “This is Biden’s stock market, not Trump. I did not take charge before January 20. Tariffs will start to be implemented soon and companies will start coming to America in record numbers. Our country will move forward rapidly, but we will have to get rid of Biden’s overhang. We have given bad numbers, but when the fast starts, they will be different from everyone.
GDP price index increased by 3.4 percent in the first quarter of 2025
The GDP price index rose by 3.4 percent in the first quarter of 2025, while in the fourth quarter of 2024 increased by 2.2 percent. The first quarter GDP data showed that the US economy had shrunk amidst the ongoing concerns on Trump’s tariff policy, after which the US dollar increased compared to other major currencies.
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