Trump tariff turbulence: U.S. GDP signed 0.3% in the first quarter as bulls stare at trade uncertainty; Dow scores more than 750 points
US GDP contraction is due to imports: The world's largest economy signed a 0.3% contract in the March quarter, turning around after expanding 2.4% in the past three months, showing official data released on Wednesday. This development comes as many analysts blame U.S. President Donald Trump for his back and forth on tariffs, even though he has stopped the mutual tariffs of most U.S. trading partners. Economists say the economic contraction in the first quarter of 2025 was due to large imports, which is an obvious attempt by U.S. companies to cope with higher costs.
U.S. GDP Update | U.S. GDP shrinks by 0.3% in March quarter
According to advance macroeconomic estimates from the U.S. Department of Commerce Bureau of Economic Analysis, the U.S. gross domestic product (GDP) fell 0.3% in the quarter ended March 31.
The latest U.S. GDP rating contrasts sharply with the generally expected moderate expansion.
U.S. businesses obviously rank imports at higher expected costs.
Many economists believe that this trend emphasizes the nature of the chaotic impact of Trump's trade policy.
Dow Jones collapses in early trade after U.S. Bureau of Statistics’ bad economic news
U.S. stocks began to fall deep in the red, and the bulls responded to negative economic readings.
The Dow Jones Industrial Average (DJIA) is one of Wall Street's two main benchmarks, falling as much as 782 points, or 1.9%, to 39,745.6 minutes after the news.
Economist stares at U.S. imports
The U.S. commodity trade deficit peaked in March due to unprecedented monthly imports, separate data showed.
Trump 2.0's 100 Days
Macroeconomic data follows the first 100 days after the 47th U.S. president completed his first tenured tenure in office.
On Tuesday, Trump signed an executive order that approved additional relief for U.S. automakers, which would help the industry provide more power for domestic production, from the recently announced 25% of duties for cars and their parts.
The development undermines the latest softening of Trump's tariff actions on trading partners as he tries to crack trade deals aimed at reducing barriers to exporting other countries to the United States. Also read: Trump 100 Days: What he promised, and what else is to be decided?
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