The US economy experienced a significant contraction in the first quarter of 2025, shrinking by an annualized rate of 0.3 percent. This marks a reversal from nearly three years of steady growth and has raised concerns about an impending recession.
A recent report highlights that tariff-related uncertainty led to a decrease in spending patterns, with panic purchases ahead of potential tariffs fueling imports. The GDP contraction is a new low for the US economy, indicating that the effects of trade tensions are becoming increasingly evident.
Source: https://www.washingtonpost.com/business/2025/04/30/gdp-q1-economy-tariffs