US Economy Shrinks: Trump Blames Biden, Not Tariffs

US Economy Shrinks: Trump Blames Biden, Not Tariffs –

May 01, 2025 Khushi Kumari

The U.S. economy shrank by 0.3% in Q1 2025, marking its first contraction since 2022, amid rising trade tensions and tariff implementations

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Businesses accelerated imports ahead of new tariffs, leading to a record trade deficit that significantly impacted GDP figures

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Consumer spending growth decelerated to 1.8%, influenced by post-holiday spending lulls and cautious consumer behavior

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Federal budget reductions and layoffs contributed to decreased government spending, further dampening economic growth

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President Trump defended his tariff policies, asserting they would benefit the economy long-term, and attributed current economic challenges to the previous administration

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Polls indicate declining public confidence in Trump's economic leadership, with many Americans expressing concerns over potential recession risks

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The U.S. economic slowdown has raised concerns about potential ripple effects on global markets, particularly in trade-dependent economies

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