Trump blames Biden for economic problems

US President Donald Trump said on Wednesday that US economic data, including a decrease in gross domestic product (GDP) in the first quarter, represents ‘reminiscences’ from his predecessor Joe Biden and that the customs tariffs he has introduced.

The Republican billionaire, who promised to make the United States richer, faced figures on Wednesday showing a decrease in the country’s GDP in the first quarter, given that the US economy was still flourishing at the end of 2024.

GDP, which measures the creation of national wealth, decreased in the first three months of the year, that is, the beginning of Donald Trump’s second term, whose tariff policy has sent shock around the world and within its own country.

At the annualized rate -the preferred measure in the United States -the US GDP has contracted 0.3%, according to data published on Wednesday by the Department for Trade, which represents a decrease of 0.1% compared to the previous quarter. This result is clearly inferior to the expectations of most analysts, which, however, anticipated a serious slowdown (+0.4%) for the largest economy of the world.

« Our country will take off economically, but first we have to get rid of Joe Biden’s remains, » President Donald Trump reacted on the SA TRUTH Social platform.

« It will take some time, it has nothing to do with customs duties, except that it left us with bad statistics, » added the head of state, urging their fellow citizens to prove ‘patience !!!’.

The financial markets felt the impact. European scholarships entered the red after the publication of the US GDP. And Wall Street has opened net down.

The share of imports

The decrease in GDP in the first quarter is largely due to an arithmetic rule, which means that imports are low in calculation. However, overseas acquisitions increased at the beginning of the year, as a result, according to experts, the desire of companies to ensure an advance before imposing new tariffs and to be able to take advantage of the conditions prior to the forced remodeling of the economy initiated by Donald Trump.

‘The decrease in GDP in the first quarter reflects first and foremost an increase in imports (…), as well as a decrease in federal government expenses’, underlined in the official report.

The Trump administration has also engaged in deep discounts of public spending.

Previously, the US economy registered an increase of 2.4% in the last quarter of 2024 (at an annualized rhythm), a level of full employment and an inflation about to be under control. According to another statement on Wednesday morning, the creation of jobs in the US private sector has abruptly slowed down in April, being below expectations.

This data come when the Lesseman at the White House celebrates the first 100 days of the second term, which started on January 20.

Deserving or not worth it

« In general, I believe that the impact of presidents on economic performance is overestimated, especially in the first 100 days of mandate, » said AFP Tara Sinclair, an economy professor at George Washington University, before publishing GDP data.

« But this time, » she added, « is different, as the growth of imports is a direct result of the buyers strategy to avoid the president’s tariffs. »

Since April, the Executive has significantly increased customs duties for foreign products and has doubled the surtax for those in China. Beijing has responded with other rates, sufficient to reduce American exports, which were also the target of calls to the boycot.

A devastating snowball effect cannot be excluded: consumers who review their priorities, distributors with fewer goods to sell, private carriers of cargo, reorganization plans.

« Even the government admits that it will be painful in the short term, and the question that arises now is: » Will it be worth it for American citizens?  » ‘noted Tara Sinclair.

According to her, the customs policy, which should favor the indigenous industry, is currently too unstable to encourage companies to develop ‘Made in USA’.

« The risk is that we will not produce more in the United States and, at the same time, we will lose the ability to buy cheap from abroad, » concluded Sinclair.