The US economy contracts at a rate of 0.3 %, as Trump’s tariff stimulates the import

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The American economy was contracted by 0.3 percent during the first quarter, as companies in the world’s largest economy responded to the trade war by Donald Trump by rushing to import goods.

The decrease in the gross domestic product of this period was worse than the latest and comparison of economists at a rate of 2.4 percent registered for the fourth quarter.

The number is the first time since 2022, in which the reading of the GDP of the world’s largest economy has shrunk.

The fall was largely the result of American companies rushing to buy goods from abroad before Trump’s comprehensive tariffWith the American Statistical Office data on Tuesday, the commercial deficit of goods that reach a record level in March.

In a post on his social network, Trump suggested that the numbers “have nothing to do with definitions.”

He added: “I did not blame former President Joe Biden, saying:” I did not assume his duties until January 20 … when the boom begins, it will not be like anything else. Be patient !!! “

The difference between imports and exports is an important factor in the gross domestic product account, which also measures local consumption, investment and government spending.

“The front loading of orders advanced in the customs tariff” has “created a tremendous shock to GDP,” said Gregory Daco, Ey-Parthenon, said.

But Daco referred to the factors behind the GDP on Wednesday as “unprecedented deformities” that are unlikely to change the federal reserve accounts about the basic performance of the American economy.

Although the commercial deficit of the goods has decreased to the total GDP of the quarter, this was partly compensated by the spending of companies on storage.

Futures of shares decreased and bond revenue increased slightly after the data. The return of the Treasury Ministry increased for two years, which moves with interest rate expectations, by 0.01 degrees Celsius to 3.66 percent.

There was no major shift in the expenses of reducing interest rates after data, as traders in the futures market are still seeking about four discounts this year.

Many economists in Wall Street reviewed their estimates of growth in the first quarter to the bottom after publishing the goods trade numbers on Tuesday.

The Economic Analysis Office, which produced the GDP numbers on Wednesday, added that the decrease in production for the first quarter also reflects a decrease in government spending.

In a recognition of the storage that occurred before the Trump tariff was announced this month, the office highlighted the high “private stock investment”.

He added that the spending of consumers was also among the factors that are partially compensated, but not completely, the increase in imports and low government spending.

“The strong domestic demand numbers are an impressive reminder of what might be a graceful, graceful decline until the comprehensive definitions threw the economy outside the path,” said Eswar Barasad, a professor at Cornell University.

Trump’s trade war is expected to lead to a slower growth during the second half of this year, with consumption prices high.

The International Monetary Fund said last week that the gross domestic product of the United States will expand by 1.8 percent this year – a decrease from its 2.7 percent estimate. Many forecasts in the private sector do not expect any growth at all.