World News | US Economy Shrinks 0.3% in First Quarter as Trump Trade Wars Disrupt Business
Get latest articles and stories on World at LatestLY. The US economy shrank 0.3% from January through March, first drop in three years. It was slowed by a surge in imports as companies in the United States tried to bring in foreign goods before President Donald Trump imposed massive tariffs.
Washington, Apr 30 (AP) The US economy shrank 0.3% from January through March, first drop in three years. It was slowed by a surge in imports as companies in the United States tried to bring in foreign goods before President Donald Trump imposed massive tariffs.
The January-March expansion was the slowest in almost three years and was down from 2.4% in the last three months of 2024. Imports shaved 5 percentage points off first-quarter growth. Consumer spending also slowed sharply.
Trump inherited a solid economy that had grown steadily despite high interest rates imposed by the Federal Reserve to fight inflation. His erratic trade policies — including 145% tariffs on China — have paralysed businesses and threatened to raise prices and hurt consumers. (AP)
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