People buy goods at a supermarket in California, USA – Photo: Reuters
According to CNBC on April 30, the US economy in the first 3 months of 2025 recorded a decline due to a sudden increase in the amount of goods imported while President Donald Trump launched a trade war with many countries.
According to a report of the US Department of Commerce, the gross domestic product (GDP) in January to March to 3-2025 decreased at an annual rate of 0.3%. This is the first quarter since the first quarter of 1-2022 US GDP recorded negative growth.
Participating in Dow Jones’s survey, some experts said they had expected an increase of 0.4% after the US GDP in Q4 4-2024 grew by 2.4%.
However, economic experts in Wall Street have recently lowered the level of expectationgrowthSound, mainly due to the sudden increase in imported goods when businesses strive to import goods before Mr. Trump announced reciprocal tax rates in early April.
In the quarter 1-2025, imported into the US increased by 41.3%, with goods imported by 50.9%. This is the highest increase since 1974 if notPandemic Covid-19.
Imports are calculated as the except for GDP, so this negative growth may not be seen too negative, because this trend is likely to reverse in the next quarters.
Meanwhile, US exports at the same time to record increased by 1.8%. The private investment level also skyrocketed 21.9% in the quarter 1-2025 may also be due to dynamics from tariffs.
Domestic consumption slows down and the decline in federal spending is also one of the reasons why American GDP has decreased in the last quarter.
Personal spending ofconsumerThe US in the quarter increased by 1.8%, this is the latest increase in quarter since the second quarter of 2-2023, decreasing compared to 4% in the previous quarter.
The federal government spending also decreased by 5.1% in the quarter, reducing about 1/3 of the percentage of GDP.
In response to this non -positive information, President Trump said that the financial market plummeted and negative economic growth is the responsibility of former President Biden.
“This is Biden’s stock market, not Trump – Mr. Trump posted on the online Truth Social on April 30 – our country will explode, but we have to escape Biden’s shadow.”
Mr. Trump’s comments came after the US GDP fell 0.3% in the first quarter of this year, causing the financial market to plummet. The fourth quarter of US GDP in 2024 recorded an increase of 2.4%.
“This will take some time and have nothing to do with the tariffs. When the explosive stage starts, everything will change completely. Be patient,” he wrote.
Mr. Trump did not rush to reach the trade agreement
On the same day 30-4, US President Donald Trump knew he was having “potential” trade agreements with India, Korea and Japan.
According to Mr. Trump, he was not in a hurry to reach an agreement with trading partners because the US was reaping from the tariff policy he launched.
On April 2, Mr. Trump announced that the reciprocal tax imposed up to tens of percent to many US partnerships, but later postpone the above tax rates with 90 days and asked countries to propose trade agreements with Washington in exchange for tax reduction.
“They want us. We don’t need them,” Mr. Trump said.
