Adding to the already negative economic data released earlier this week, Wednesday saw more bad news for the US economy during the first quarter of the new Trump Administration.
The impact of the chaotic Trump tariff policy has resulted in an expected downturn in economic growth.
GDP contracted by 0.3% during the first three months – a marked contrast from the growth of 2.4% in the last quarter of 2024.
The pullback in the US economy is the first time since the start of 2022.
As American citizens rightly fear, the US is in the midst of an economic slowdown on the verge of a technical recession.
If things don’t turn around in Q2, and the US sees another quarter of negative growth, a full-fledged recession will be in swing.
Of course, Trump – in his deny and delude way – quickly took to social media to blame, who else, but Biden.
In another misleading Truth Social post, Trump wrote, “This is Biden’s Stock Market, not Trump’s. I didn’t take over until January 20th. Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden “Overhang.” This will take a while, 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!!!”
Hmm, the last quarter of Biden’s term saw growth of 2.4%, yet a nosediving GDP of -0.3% under Trump’s watch is an ‘overhang’.
Not likely.
The truth is that the impact of American tariffs – and the subsequent retaliatory measures taken by foreign governments – is largely to blame for the economic slowdown.
It is just more costly to do business and to buy things.
The tariffs, coupled with the flip-flopping and disorder, have become a mainstay of this Administration.
Unfortunately, the American people cannot afford to ‘be patient’, continued tariff measures will only increase prices and bring a further economic slowdown which may result in higher unemployment rates.
All of which hurts lowest-income families the most, the ones who are already stretched to the brink.
Ultimately, waiting for an ever-unlikely ‘boom’ will result in many households going bust.