I guess Trump's supporters will couch this as part of the tough medicine to cure the USA's ails. Obviously, the rush to import at lower tariffs has had a one-off negative impact on GDP.
Quote:
US economy contracts at 0.3% rate as Trump tariffs prompt import surge
Annualised first-quarter figure comes below expectations and contrasts with previous growth
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 stockpiling imports.
The slide in GDP for the period was worse than economists’ most recent forecasts and compared with the 2.4 per cent rate recorded for the fourth quarter.
The fall was largely the result of US companies’ rush to accumulate inventory ahead of Trump’s sweeping tariffs, with US Census Bureau data on Tuesday showing the trade deficit for goods hitting a record high in March.
The difference between imports and exports is an important factor in calculating GDP, which also measures domestic consumption, investment and government spending.
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https://www.ft.com/content/104ece93-...9-ace4e314ec0c