GDP falls as economists stoke recession fears.

GDP had a negative growth of 0.3% in Q1.

Transcript

00:00After a strong final quarter of 2024 that saw gross domestic product rise by 2.4%, the

00:05US economy shrank during President Trump's first quarter back in office.

00:09According to the latest report by the Commerce Department, GDP fell 0.3% from January to

00:14March.

00:15This marks the country's first quarter of negative growth since Q1 of 2022.

00:19The biggest culprit comes as no surprise, with tariffs at the top of the list of reasons

00:23for economic contraction.

00:24Despite the tariffs not being officially implemented until after Q1 ended, many businesses tried

00:29getting ahead of the new import taxes by front-loading their orders.

00:32However, according to Trump, his predecessor Joe Biden is to blame for the Q1 numbers.

00:37Trump wrote on Truth Social,

00:38This will take a while, has nothing to do with tariffs, only that he left us with bad numbers.

00:43But when the boom begins, it will be like no other.

00:45Be patient.

00:46Now as the trade war continues, many economists are sounding the alarm on a potential recession.

00:51The US is considered to be in a recession after two consecutive quarters of negative growth.

00:56Considering we're already halfway there, many now expect a recession to hit by the second

00:59half of the year.

01:01That'll do it for your daily briefing.

01:02From New York City, I'm Kelsey Barbario with The Street.