US GDP Contracts as Tariffs Unleash Flood of Imports

GDP decreased at 0.3% in the March quarter, registering first decline in 3 years

- Reuters

WASHINGTON: The US economy contracted for the first time in three years in the first quarter, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs and underscoring the disruptive nature of President Donald Trump's often chaotic trade policy.

The Commerce Department's advance gross domestic product (GDP) report on Wednesday, however, grossly exaggerated the economy's dimming prospects. Though consumer spending slowed considerably, the pace of growth remained healthy. Businesses also boosted investment in equipment.

Nonetheless, both consumer and business spending likely reflected front-loading before the import duties kicked in. As such, the report reinforced Americans' growing disapproval of Trump's handling of the economy as he marks 100 days in office.