US GDP has a 0.5% drop in the first months of Trump’s term

This result corresponds to the third and final estimate of the Department of Commerce. Anticipation of purchases to avoid Donald Trump’s tariff toppled GDP by almost 5 percentage points. Trump announces reciprocal tariffs Reuters/Carlos Barria The US Gross Domestic Product (GDP) dropped 0.5% at the first quarter, after increasing 2.4% in the last three months of 2024, according to US Department of Trade Department data. 🔎The annualized rate shows how the economy would grow in a year if the current pace is maintained. This measure is used to facilitate comparison with the growth of other periods. This result corresponds to the third and last estimate of the Department of Commerce for GDP and represents a worsening compared to the previous reading, which pointed to a drop of 0.2%. The data also contradicted the initial projections of analysts, which expected an increase of 0.3% in the period. More recently, it was expected that the third and last review would not bring changes. Negative performance was driven by the significant increase in imports, the result of the attempted business to anticipate purchases and to avoid additional fare costs announced by President Donald Trump. Imports grew 37.9%, the biggest advance since 2020. Alone, the phenomenon has reduced GDP by almost 4.7 percentage points. Family consumption also slowed, with only 0.5% increase – well below the significant 4% registered in the fourth quarter of 2024. Federal Government spending also fell, with an annualized retraction of 4.6%, the highest since 2022. With temporary suspension of Trump tariffs, after negative repercussions, the increase in imports should not be repeated in the second quarter. According to research by the FactSet data company, economists project growth recovery to 3% in the period. Donald Trump completes 100 days of government in the US tariff shows bad results although Trump see tariffs as a tool to increase US public account revenue, compensate for tax cuts promised during his campaign and revive the US economy, which has long been declining, indicators do not bring such optimistic prospects. In publicizing the first preliminary, Trump stated that the contraction of the American economy “has nothing to do” with his import tariffs and that the indices will prosper when they come into force. “This is Biden’s stock market, not Trump. Only I took over on January 20. Tariffs will start to be worth soon, and companies are starting to move to the US in record numbers. Our country will thrive, but we need to get rid of Biden’s ‘excess’,” Trump wrote on social networks. “It will take a while, it has nothing to do with tariffs, only that he left us with bad numbers, but when the boom begins, it will be like no other. Be patient !!!”, he added. Donald Trump’s publication on his profile at Truth Social on Wednesday (30). Reproduction/ Truth Social The US President has been announcing a series of tariffs since he has arrived. First, there were rates to specific countries and products. Then came the so -called “reciprocal tariffs”, which broadly reached more than 180 countries and were paused for 90 days. The repercussion was bad from the beginning, especially after the dispute climbed the Chinese.

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