From January to March of this year, the GDP drop was recorded by 0.3%, while in the last quarter of 2024 the economy increased by 2.4%.
“A decrease in real GDP in the first quarter, first of all, reflects an increase in imports and a decrease in government spending. This was partially compensated by an increase in investments, consumer expenses and export,” the review said.
According to the Associated Press, the fall of the economy was the result of the “chaotic trade policy” of the current president of the United States Donald Trump, in particular, the introduction of duties on imported goods “paralyzed business”.
Context
On April 2, Trump announced the introduction of import duties from many countries in the amount of 10% to 49%.
On April 3, Trump said that he was ready to reduce import tariffs if other countries offer him something “phenomenal”.
On April 8, he said that world leaders allegedly achieved from him a decrease in trade duties. According to him, the heads of countries call on the phone and “kiss his ass” to try to reduce the tariffs introduced by the United States.
On April 9, Trump announced on his social network Truth Social about a 90-day pause in the calculation of previously introduced duties. The head of the White House noted that the decision comes into force immediately. At the same time, Trump increased duties for China even more. He expressed the hope that “somehow in the near future, China would understand that the times when he robbed the United States and other countries will no longer be acceptable.”
