US economy contracts in Q1, weighed down by deluge of imports

The US economy contracted in the first quarter, weighed down by a deluge of goods imported by businesses eager to avoid higher costs, underscoring the disruptive nature of President Donald Trump's often chaotic tariff policy.

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WASHINGTON - The US economy contracted in the first quarter, weighed down by a deluge of goods imported by businesses eager to avoid higher costs, underscoring the disruptive nature of President Donald Trump's often chaotic tariff policy.

In response, Mr Trump blamed his predecessor, Mr Joe Biden. "I didn't take over until January 20th," he posted on social media. "Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden 'Overhang.'

Gross domestic product (GDP) decreased at a 0.3 per cent annualised rate, the Commerce Department said in its advance estimate of first-quarter GDP on April 30.

Economists polled by Reuters forecast that GDP increased at a 0.3 per cent pace in the January to March period. The survey was, however, concluded before data on April 29 showed the goods trade deficit surged to an all-time high in March amid record imports, which prompted most economists to sharply downgrade their GDP estimates.