GDP had a negative growth of 0.3% in Q1.
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00:00After a strong final quarter of 2024 that saw gross domestic product rise by 2.4%, the
00:05US economy shrank during President Trump's first quarter back in office.
00:09According to the latest report by the Commerce Department, GDP fell 0.3% from January to
00:14March.
00:15This marks the country's first quarter of negative growth since Q1 of 2022.
00:19The biggest culprit comes as no surprise, with tariffs at the top of the list of reasons
00:23for economic contraction.
00:24Despite the tariffs not being officially implemented until after Q1 ended, many businesses tried
00:29getting ahead of the new import taxes by front-loading their orders.
00:32However, according to Trump, his predecessor Joe Biden is to blame for the Q1 numbers.
00:37Trump wrote on Truth Social,
00:38This will take a while, has nothing to do with tariffs, only that he left us with bad numbers.
00:43But when the boom begins, it will be like no other.
00:45Be patient.
00:46Now as the trade war continues, many economists are sounding the alarm on a potential recession.
00:51The US is considered to be in a recession after two consecutive quarters of negative growth.
00:56Considering we're already halfway there, many now expect a recession to hit by the second
00:59half of the year.
01:01That'll do it for your daily briefing.
01:02From New York City, I'm Kelsey Barbario with The Street.