U.S. economic gross domestic product contracted 0.3% for the first three months of 2025 as imports surged amid Trump administration tariffs.

President Donald Trump blamed his predecessor and defended his sweeping tariffs after new data showed the U.S. economy contracting last quarter.

The U.S. economy contracted at an annualized 0.3% rate in the first quarter, as a rush to import goods ahead of President Trump's tariffs weighed on economic growth, the Commerce Department said on Wednesday.

The U.S. economy contracted 0.3% in the first quarter of 2025, the first negative reading since the Covid pandemic, according to an initial measurement by the Commerce Department.

The U.S. economy contracted early this year as businesses imported a massive trove of goods before President Donald Trump’s sweeping tariffs took effect, widening the trade deficit and curtailing growth.

The U.S. economy contracted in the first quarter, weighed down by a deluge of goods imported by businesses eager to avoid higher costs, underscoring the disruptive nature of President Donald Trump's often chaotic tariff policy.