The U.S. economy contracted at a 0.2% annual rate in the first quarter of 2025, marking the first decline in three years, according to the Associated Press. The drop was attributed to business disruptions caused by President Donald Trump’s trade wars, according to a revised government estimate. A surge in imports, as U.S. companies rushed to stock up ahead of impending tariffs, reduced first-quarter growth. The U.S. economy reversed a 2.4% gain from the fourth quarter of 2024 with a GDP decline in Q1 2025, driven by a 42.6% surge in imports. The import spike cut over five percentage points from growth, while consumer spending slowed sharply.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02U.S. economy contracted at a 0.2% annual rate in the first quarter of 2025,
00:07marking the first decline in three years, according to the Associated Press.
00:11The drop is attributed to business disruptions caused by President Donald Trump's trade wars,
00:14according to a revised government estimate.
00:17Surge in imports as U.S. companies rushed to stock ahead of impending tariffs,
00:21reduced first quarter growth.
00:22U.S. economy reversed a 2.4% gain in the fourth quarter of 2024,
00:26with a GDP decline in Q1 2025, driven by a 42.6% surge in imports.
00:33The import spike cut over 5 percentage points from growth, while consumer spending slowed sharply.
00:37For all things money, visit Benzinga.com slash GSTV.