US Economy Faces First Decline in Three Years Amid Trade Turbulence

The US economy saw a 0.3% decline from January to March after three years of growth. Imports surged as companies sought goods before President Trump's tariff imposition. First-quarter growth was sharply affected as Trump’s erratic trade policies threatened to elevate prices and hinder consumer spending.

The United States has recorded its first economic contraction in three years, with the economy shrinking by 0.3% from January through March. This downturn was primarily influenced by an increase in imports. Businesses rushed to bring in foreign goods ahead of substantial tariffs imposed by President Donald Trump.

The January-March period marked the slowest expansion in nearly three years, falling from last quarter's 2.4% growth in 2024. Import activities alone undercut first-quarter growth by 5 percentage points. Additionally, consumer spending saw a significant slowdown.

President Trump took control over a robust economy, which had grown consistently despite the Federal Reserve's high interest rates aimed at curbing inflation. However, his unpredictable trade tactics, including hefty 145% tariffs on China, have crippled businesses, potentially leading to price increases and impacting consumers negatively.

(With inputs from agencies.)