The economy contracted 0.3% in the 1st quarter as imports surged ahead of Trump's tariffs. But underlying data showed sturdy growth, despite GDP drop.

Trump inherited an economy that was firing on most, but not all, cylinders,” said Ryan Sweet at Oxford Economics.

Voters returned Donald Trump to the White House in November believing he would be better for the economy than his opponent, Democratic Vice President Kamala Harris.

The US economy unexpectedly contracted by 0.3% in the first quarter of 2025, marking the first quarterly decline in three years and defying economists’ forecasts of modest growth. -The Commerce Department cited rising imports and decreased government spending.

American businesses are cancelling orders from China, postponing expansion plans and hunkering down to see what trade policy surprises President Donald Trump plans to spring on them next.

By Kevin Yao BEIJING (Reuters) -Chinese policymakers on Monday sought to assuage concerns the broad U.S. tariffs could derail efforts to shore up a fragile economic recovery, even as analysts warn the hefty levies raise the risk of a sharp downturn in growth.

US President Trump defended his tariff strategy despite economic slowdown signs, suggesting Americans might face fewer and costlier products. He insisted China would bear the brunt of the economic pain,