Trump trade war distorts US economy as banks win and consumer mood dims
The US economy contracted by an annualised 0.3 per cent over the first quarter, as companies in the world’s largest economy responded to Donald Trump’s trade war by rushing to import goods.
The fall in the GDP reading — the first since 2022 — was worse than economists’ most recent forecasts and compared with the 2.4 per cent rise for the fourth quarter.
It was largely the result of companies’ rush to buy goods from abroad ahead of the US president’s sweeping tariffs, with imports rising at an annualised rate of 41 per cent.
The front page of the Financial Times this morning – 01-05-2025:
US economy contracts at 0.3% rate as Trump’s tariffs prompt import surge
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