According to government data, the already estimated American economy in the first three months this year made more contracted.
The Commerce Department’s agreement, in the first quarters of 2025, the actual GDP fell 0.5% to 0.2%.
Why did the US economy contract more than expected?
The department stated that the decline mainly reflects the amendment at the bottom for consumer expenses and exports, which were partially affected by the amendment downwards for imports.
Data came after an import increase by US President Donald Trump’s tariff.
As a result, the stores next to the stock tariff of businesses are specific accessories from China.
The import expanded 37.9%, the fastest speed after 2020, and the GDP pushed below 4.7 percentage points.
Economists say that import flow is unlikely to be repeated in the second quarter, and therefore it should not weigh on GDP as the second quarter growth is expected to bounce back to 3%.
Tram tariff deadline in July
Trump may have closed or postponed some of the highest Tarafts due to ongoing trade talks, but the July deadline is almost to kick for high taffs – to add uncertainty to the economy.
Trump’s TATIFT has pushed China and the European Union into a race to find new trade partners, with the European Union state aims to re-read the country in Indo-Pacific and Global South.
Last month, Trump planned a 50% tassif on the European Union till 9 July.
At a summit for the NATO Military Alliance on Wednesday, French President Emmanuel Macron called the trade as “Absration” and Tiffs were called to leave Ephr NATO allies, who agreed to pledge to dedicate 5% of GDP to defense expenses.
Edited by: saim dusan inayatullah
