President Donald Trump responded to a surprise first-quarter economic contraction by blaming past policies and emphasizing a potential rebound. Despite a drop in GDP—the first in three years—Trump described the dip as temporary, blaming “distortions” from imports and government spending, while also highlighting strong business investment.
The U.S. Commerce Department’s GDP data showed a decline driven by import surges ahead of Trump’s tariffs. Economists noted strong consumer spending and private investment, suggesting potential recovery. Trump called out President Biden when addressing reporters, though Biden is no longer in office, and later attributed the numbers to inventory and trade fluctuations.
Trade adviser Peter Navarro praised the data, calling it "the best negative print" he’s seen, insisting businesses were frontloading imports to avoid tariffs. This contradicted Trump’s social media remarks denying that tariffs impacted markets.
Trump’s mixed messaging comes as he marks 100 days in office amid slipping approval. A Reuters/Ipsos poll shows 42% approve of his performance, while disapproval has risen to 53%. Approval of his economic leadership dropped to 36%, the lowest of his term.
Fears of a Trump-induced recession are growing. Economists argue that the slowdown is policy-driven, with tariffs on Chinese goods sparking concern. Joseph Brusuelas of RSM predicts a recession could begin midyear unless tariffs are rolled back quickly.
Democrats seized on the downturn, calling it a failure of Trump’s policies. “This is the Trump economy, and it is a failed economy,” said House Minority Leader Hakeem Jeffries.
Despite the data, Treasury Secretary Scott Bessent said families are stabilizing financially and praised Trump’s plans to make the U.S. a leader in AI and manufacturing, noting falling energy prices and stable mortgage rates.