US economy in the first quarter unexpectedly dropped
This is her first decline in three years. President Trump’s duties contributed to this.
Washington. The US economy unexpectedly fell by 0.3 %year -on -year in the 1st quarter of 2025. This is her first decline in three years.
Contributed to that duties President Donald Trump.
This stems from the preliminary data of the Ministry of Commerce. This was reported by AP, AFP and Reuters.
A sharp increase in imports
By comparison, in the previous 4th quarter of 2024, the United States Gross Domestic Product (GDP) increased by 2.4 %year -on -year.
The decline in the economy in the 1st quarter contributed a sharp increase in imports by 41.3 %, when companies rushed to create stocks before President Trump introduced massive duties. This underlines the disturbing character of his often chaotic customs policy.
Statistics also revealed that in the 1st quarter, which was also the first Trump’s three -month period in the office, the growth of consumer spending significantly slowed to 1.8 % of 4 % in 4 % of 2024.
Economists, addressed by Reuters, predicted the growth of the US economy by 0.3 %from January to the end of March. However, the survey was carried out before Tuesday (29 April 29) showed that the US deficit in trade in goods in March increased to historical maximum due to record imports.
There is a risk of increasing prices
Trump inherited an economy that grew solidly despite the high interest rates of the Federal Reserve (FED). The President’s devious business policy, including 145 % duties on the majority of imports from China, was paralyzed by businesses and threatens to increase prices, which will hit consumers.
Last November, Trump won the presidential election for the restlessness of voters with the development of the economy, especially with inflation.
Consumer confidence is close to the five -year minimum and the business mood has worsened.
Airlines withdrew their financial forecasts for 2025, referring to uncertainty about travel expenses that households do not consider necessary. From the beginning, economists warn that duties will increase costs for both companies and households.
