Washington: The US economy shrank 0.3% from January through March, first drop in three years. It was slowed by a surge in imports as companies in the United States tried to bring in foreign goods before President Donald Trump imposed massive tariffs.
The January-March expansion was the slowest in almost three years and was down from 2.4% in the last three months of 2024. Imports shaved 5 percentage points off first-quarter growth. Consumer spending also slowed sharply.
Trump inherited a solid economy that had grown steadily despite high interest rates imposed by the Federal Reserve to fight inflation. His erratic trade policies — including 145% tariffs on China — have paralysed businesses and threatened to raise prices and hurt consumers.
The shrinking US economy could jut be the proverbial tip of the iceberg of economic woes for the world’s largest economy as an increasing number of economists predict crises precipitated by the tariff policies of US President Donald Trump. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
