US economy contracts by 0.3% in Q1 2025 as imports surge, igniting political blame game

The surprising 0.3% GDP contraction in Q1 2025, fueled by a surge in imports ahead of tariffs, has sparked a political firestorm with blame shifting between Trump and Biden.

Sources:
Sky NewsFinanceAbcnews+6
Updated 21m ago
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Cause And Effect

Political Fallout from the Economic Contraction

"This is Biden's Stock Market, not Trump’s. I didn’t take over until January 20th."
President Donald Trump
Thehill
"admit his failure and reverse course, and immediately fire his economic team."
Senate Minority Leader Charles E. Schumer
1
'That's Biden, that's not Trump because we came in, in January, these are quarterly numbers.'
President Donald Trump
1
IMF forecast for annual growth
1.8%
Sky News
Key Facts
  • Trump’s first 100 days in office saw the worst stock market performance for any new president since the 1970s.Thehill
  • The US trade deficit has widened sharply, contrasting Trump's mission to cut the gap between exports and imports.Sky News
  • The International Monetary Fund projected 1.8% annual growth for the US this year amidst recession fears.Sky News

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Data Statistics

Key Economic Statistics and Market Reactions

Dow futures points drop
300
1
Key Facts
  • Dow futures fell over 300 points after the GDP report, reflecting market reactions to the economic news.1
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Background Context

US Economy Contraction: Background and Key Factors

GDP contraction rate
0.3%
Finance
Surge in imports rate
41.3%
Finance
Consumer spending increase rate
1.8%
Cnbc
Key Facts
  • The US economy contracted by 0.3% in Q1 2025, marking the first decline in three years.Cnbc2
  • The contraction was driven by a surge in imports at an annualized rate of 41.3%, affecting GDP.Finance
  • Consumer spending increased by 1.8%, the slowest quarterly gain since Q2 2023.Cnbc

Other Facts in these Reports

Future recession risks linked to rising tariffs and market turmoil as reported by economists.
Cbsnews
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