U.S. Economy Stumbles Amid Trade Policy Chaos

The U.S. economy contracted for the first time in three years, primarily due to a surge in imports tied to President Trump's tariff policies. Despite initial GDP decline and wavering consumer confidence, there is hope for growth recovery in the second quarter. However, uncertainty and higher tariffs pose ongoing challenges.

The U.S. economy contracted in the first quarter for the first time in three years, largely due to President Donald Trump's tumultuous trade policies, as per the Commerce Department's report. While consumer spending slowed, investment in information processing and transportation equipment remained healthy.

This decline reflects preemptive consumer and business spending before new import duties were implemented. The report has only fueled discontent over Trump's economic management, which has seen dwindling consumer confidence and business sentiment.

Economists predict a rebound in the second quarter as import effects wane, but stagflation remains a risk due to ongoing tariff uncertainties. The gross domestic product fell by a 0.3% annualized rate amid the White House's significant funding cuts and new tariffs, sparking global trade tensions. Reversing these challenges will be essential to stimulate GDP growth in the future.

(With inputs from agencies.)