US economy shrinks in first quarter of Trump 2.0 amid sweeping tariffs

[BeaverFever]

US economy shrinks in first quarter of Trump 2.0 amid sweeping tariffs
 

The US economy shrank in the first three months of Donald Trump’s second term as the president sought to roll out an aggressive trade strategy, claiming that sweeping tariffs on the world would strengthen the US economy.

Gross domestic product (GDP), a key measure of overall growth in the US economy, fell by 0.3% in the first quarter of the year, down from 2.4% in the last quarter of 2024. The contraction – the first since the start of 2022 – puts the US on the brink of a technical recession, defined by two quarters of negative growth.

 

The drop in activity comes amid a huge fall in consumer sentiment, which in April dropped 32% to its lowest level since the 1990 recession.
 

https://www.theguardian.com/business/2025/apr/30/economy-gdp-q1-trump-tariffs

1 minute ago, BeaverFever said:

US economy shrinks in first quarter of Trump 2.0 amid sweeping tariffs
 

The US economy shrank in the first three months of Donald Trump’s second term as the president sought to roll out an aggressive trade strategy, claiming that sweeping tariffs on the world would strengthen the US economy.

Gross domestic product (GDP), a key measure of overall growth in the US economy, fell by 0.3% in the first quarter of the year, down from 2.4% in the last quarter of 2024. The contraction – the first since the start of 2022 – puts the US on the brink of a technical recession, defined by two quarters of negative growth.

 

The drop in activity comes amid a huge fall in consumer sentiment, which in April dropped 32% to its lowest level since the 1990 recession.
 

https://www.theguardian.com/business/2025/apr/30/economy-gdp-q1-trump-tariffs

Gee it’s almost as if giving incompetent mor0ns the power to rule the economy by random whim is bad or something. Go figure. 

Edited Wednesday at 02:57 PM by BeaverFever

[Deluge]

2 hours ago, BeaverFever said:

US economy shrinks in first quarter of Trump 2.0 amid sweeping tariffs
 

The US economy shrank in the first three months of Donald Trump’s second term as the president sought to roll out an aggressive trade strategy, claiming that sweeping tariffs on the world would strengthen the US economy.

Gross domestic product (GDP), a key measure of overall growth in the US economy, fell by 0.3% in the first quarter of the year, down from 2.4% in the last quarter of 2024. The contraction – the first since the start of 2022 – puts the US on the brink of a technical recession, defined by two quarters of negative growth.

 

The drop in activity comes amid a huge fall in consumer sentiment, which in April dropped 32% to its lowest level since the 1990 recession.
 

https://www.theguardian.com/business/2025/apr/30/economy-gdp-q1-trump-tariffs

Gee it’s almost as if giving incompetent mor0ns the power to rule the economy by random whim is bad or something. Go figure. 

That's why Harris lost - because she was a diversity hire: an "incompetent mor*n". 

In light of all the f*ckups and destruction from the previous administration, Trump is needed now more than ever. 

[Michael Hardner]

"we inherited this big mess from Biden" 🤔

[User]

3 hours ago, BeaverFever said:

Gee it’s almost as if giving incompetent mor0ns the power to rule the economy by random whim is bad or something. Go figure. 

Congress has ceded far too much power to the Executive, including the authority over tariffs. 

For all the good Trump is doing, his inane and unclear tariff policy is sinking it all right now. I keep hoping he will stop the madness. 

[Deluge]

8 minutes ago, Michael Hardner said:

"we inherited this big mess from Biden" 🤔

We inherited A big mess from Biden. We are now in the process of cleaning it up, and it's not pretty. 

When Trump is finished cleaning up the country, we'll get back to a better America.  

[Politics1990]

3 hours ago, Deluge said:

We inherited A big mess from Biden. We are now in the process of cleaning it up, and it's not pretty. 

When Trump is finished cleaning up the country, we'll get back to a better America.  

its cute you actually think this  lol.. the whole reason why the economy shrunk for the quarter is trumps fault not biden lol

[Deluge]

48 minutes ago, Politics1990 said:

its cute you actually think this  lol.. the whole reason why the economy shrunk for the quarter is trumps fault not biden lol

What's cute is that your TDS is still flaming. 

Biden left the mess and Trump is cleaning it up. 

Once the economy does recover, I'm sure I'll be rubbing that success in your faces.  

[gatomontes99]

First, tariffs have not hit the economy yet. for imports, tariffs won't be on the shelves (as it were) until late August or September.

Second, the "growth" we had under Biden was primarily government spending and then medical sector. We did not grow significantly in any other area for the last two years. Consequently, all the job growth was either government jobs or health care related.

[User]

1 hour ago, gatomontes99 said:

First, tariffs have not hit the economy yet. for imports, tariffs won't be on the shelves (as it were) until late August or September.

Second, the "growth" we had under Biden was primarily government spending and then medical sector. We did not grow significantly in any other area for the last two years. Consequently, all the job growth was either government jobs or health care related.

Well, the real cost $$$ may not have directly hit yet, but the reaction with consumer confidence has. The constant threats, implementations, take backs, and continued mixed signals have in fact caused both consumers and producers to change drastically.  

[Michael Hardner]

2 hours ago, Politics1990 said:

its cute you actually think this  lol.. the whole reason why the economy shrunk for the quarter is trumps fault not biden lol

https://globalnews.ca/news/11157562/stock-markets-sell-off/

2.4% growth in GDP for the last 3 months of last year, and now a 3% shrinkage? 

And the only new policy since then has been these tariffs. So... Blaming Biden is ridiculous

[BeaverFever]

6 hours ago, Deluge said:

We inherited A big mess from Biden. We are now in the process of cleaning it up, and it's not pretty. 

When Trump is finished cleaning up the country, we'll get back to a better America.  

It’s hilarious how you puppets can reset your brain like that. You’ll recall that when the economy was firing on all cylinders LAST YEAR Trump claimed it was because the markets knew Trump was going to win the election and his golden age had already started. You remember that don’t you?  

Second it’s a plain objective fact that the primary cause of this economic shrinkage is Trump’s tariffs.  
 

Teump is an incompetent disaster 

[BeaverFever]

2 hours ago, gatomontes99 said:

First, tariffs have not hit the economy yet. for imports, tariffs won't be on the shelves (as it were) until late August or September.

 

But consumers and businesses and investors know they’re coming and they’ve adjusted their behind accordingly. Furthermore Trump’s insanely unpredictable manner where he announces a surprise tariff of some insane amount then just as unexpectedly walks it back a day or 2 later has created a toxic air of uncertainty that’s worse than if he just left the tariff in place. At least then people would know what the future had in store and could plan accordingly. An unfavourable business environment that is known for certain is better than one which’s could unpredictably be good or bad by total random chance on the whims of a madman. 
 

2 hours ago, gatomontes99 said:

Second, the "growth" we had under Biden was primarily government spending and then medical sector. We did not grow significantly in any other area for the last two years. Consequently, all the job growth was either government jobs or health care related.

I call BS. Where’s your proof of that?

[gatomontes99]

1 hour ago, User said:

Well, the real cost $$$ may not have directly hit yet, but the reaction with consumer confidence has. The constant threats, implementations, take backs, and continued mixed signals have in fact caused both consumers and producers to change drastically.  

 

So let's look at what was actually said:

https://www.bea.gov/news/2025/gross-domestic-product-1st-quarter-2025-advance-estimate

"The decrease in real GDP in the first quarter primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending. These movements were partly offset by increases in investment, consumer spending, and exports. For more information, refer to the "Technical Notes" below."

So two things happened that negatively impacted the GDP. The increase in important (to save money on any tariffs that might have come) counted against the GDP. The upside t ok that is we will sell those items and they will be part of the GDP later.

The other was a big decrease in government spending. That's a positive thing that doesn't really reflect the consumer and manufacturer activity.

What offset the government decrease and the increased imports was investments, consumer spending and exports. Those things all went up. That's great news.

Now, if we imported a ton of crap to get ahead of tariffs and it buggered up the GDP for one quarter, so be it. But, those imports were likely purchased early. That means they likely won't be purchased later in the year. So this spike in imports will go away. Also, tariffs will prevent people from buying imports that negatively effect the GDP. So that will be better.

Just stay calm. The news makes this look bad. It isn't. The data is fine. The data is actually really good. Just because the GDP took a hit doesn't mean jobs are going away. Those are up by over 300k. It doesn't mean businesses are struggling. In fact, they are boosting orders to save money. Everything is fine.

[gatomontes99]

52 minutes ago, BeaverFever said:

I call BS. Where’s your proof of that?

https://www.bls.gov/opub/ted/2025/employment-up-256000-in-december-2024-average-gain-of-186000-jobs-per-month-in-2024.htm

https://www.bls.gov/opub/mlr/2024/article/employment-continues-to-expand-in-2023-though-at-a-slower-pace-than-in-the-previous-2-years.htm

 

[gatomontes99]

55 minutes ago, BeaverFever said:

Furthermore Trump’s insanely unpredictable manner where he announces a surprise tariff of some insane amount then just as unexpectedly walks it back a day or 2 later has created a toxic air of uncertainty that’s worse than if he just left the tariff in place.

He does that because it's a negotiating tactic.

1. Take a surprising and extreme position.

2. Force others to compromise.

3. Take what you can get and back of crazy high request.

 

[Deluge]

1 hour ago, BeaverFever said:

It’s hilarious how you puppets can reset your brain like that. You’ll recall that when the economy was firing on all cylinders LAST YEAR Trump claimed it was because the markets knew Trump was going to win the election and his golden age had already started. You remember that don’t you?  

Second it’s a plain objective fact that the primary cause of this economic shrinkage is Trump’s tariffs.  
 

Teump is an incompetent disaster 

Democrats are what's hilarious.

It's a mess right now, but that's only because Biden and his band of queers made it a mess. You brought inflation, you opened the borders, and you've layered the government with so many f*cking bureaucrats that DOGE still can't see the bottom. 

You a$$holes are the source of EVERYTHING that's wrong.

Every f*cking thing you cultists stand for is bad for America. 

[herbie]

49 minutes ago, gatomontes99 said:

He does that because it's a negotiating tactic.

Of an autistic child. Gimme a cookie sis or I'll smash your doll. No? I'll smash two of your dolls...

Don't look at what's happening at your airports. You'd have to lie and claim traffic's plunged because less immigrants are coming.

[Aristides]

[Hodad]

Let's be clear, there are people who legitimately believe that this tariff strategy is a viable tactic--not many, and not very bright, but those true believers exist. They think the US will endure a painful transition and emerge from it to something "better."

However, NO ONE actually believes that the current economic shitstorm is Biden's fault rather than a direct product of Trump's schizophrenic trade war tariff bullshit. They all know. Every single one. They are just lying, gutless simps. 

If you think tanking the economy is a long term strategic play (it isn't, but whatever) then just farking own it. It's still tanking the economy, and it's still expressly, explicitly and exclusively Trump's doing.

[BeaverFever]

23 hours ago, gatomontes99 said:

https://www.bls.gov/opub/ted/2025/employment-up-256000-in-december-2024-average-gain-of-186000-jobs-per-month-in-2024.htm

https://www.bls.gov/opub/mlr/2024/article/employment-continues-to-expand-in-2023-though-at-a-slower-pace-than-in-the-previous-2-years.htm

 

Neither of those links says the growth under Biden was due exclusively or even primarily to government spending or healthcare.

[BeaverFever]

7 hours ago, Hodad said:

Let's be clear, there are people who legitimately believe that this tariff strategy is a viable tactic--not many, and not very bright, but those true believers exist. They think the US will endure a painful transition and emerge from it to something "better."

Let’s also be clear that Trump NEVER campaigned on short term pain for long term gain. He campaigned on prosperity and golden age FROM DAY ONE 

The most generous thing you could say about this incompetent fool if you wanted to pretend he actually knows what he’s doing is to say that he pulled a bait-and-switch but I am sure he’s as surprised by the mess he’s created as his followers are. 

[BeaverFever]

22 hours ago, Deluge said:

Democrats are what's hilarious.

It's a mess right now, but that's only because Biden and his band of queers made it a mess. You brought inflation, you opened the borders, and you've layered the government with so many f*cking bureaucrats that DOGE still can't see the bottom. 

You a$$holes are the source of EVERYTHING that's wrong.

Every f*cking thing you cultists stand for is bad for America. 

Bullshit. As has ALREADY been explained to you all the economic indicators were going UP before Trump took office. Trump took credit dor that and claimed it’s because the markets new he was going to eventually become president. He claimed his golden age had already started before he was sworn in.
 

It’s absolutely hilarious to now say that somehow that the downturn AFTER Trump took office is from tue guy who is no longer in office. Stock markets don’t crash because of things that happened in the past you simpleton.   How deluded do you have to he to think that blowing up the global economic system has nothing to do either the US economy shrinking? Seriously stop being such a brainwashed dumbass.
 

Answer this: What’s it going to take for you to see the light?  How bad does it have to get and how long does it have to last?  

[BeaverFever]

23 hours ago, gatomontes99 said:

He does that because it's a negotiating tactic.

1. Take a surprising and extreme position.

2. Force others to compromise.

3. Take what you can get and back of crazy high request.

 

Pffft. Thats not genius that’s what a child does. Ever wonder why you don’t see other governments or businesses or grown adults operating that way?  You think it’s because it’s some secret tactic nobody’s thought of or something?  LMAO No intelligent person would fall for that or think that it works on others. 

[Deluge]

1 hour ago, BeaverFever said:

Bullshit. As has ALREADY been explained to you all the economic indicators were going UP before Trump took office. Trump took credit dor that and claimed it’s because the markets new he was going to eventually become president. He claimed his golden age had already started before he was sworn in.
 

It’s absolutely hilarious to now say that somehow that the downturn AFTER Trump took office is from tue guy who is no longer in office. Stock markets don’t crash because of things that happened in the past you simpleton.   How deluded do you have to he to think that blowing up the global economic system has nothing to do either the US economy shrinking? Seriously stop being such a brainwashed dumbass.
 

2. Answer this: What’s it going to take for you to see the light?  How bad does it have to get and how long does it have to last?  

1. Those were recovery numbers from COVID, you jackass. All Biden did was mostly stay out of the way, and it's a f*cking miracle that he was able to do that. 

See, democrats can grow government like nobody's business. What they CAN'T do is build a robust economy. 

Democrats are destroyers, not builders. 

 

2. As bad and as long as it takes. I'm giving it at least a year before I even raise my eyebrows. 

 

Edited 22 hours ago by Deluge

[gatomontes99]

4 hours ago, BeaverFever said:

Neither of those links says the growth under Biden was due exclusively or even primarily to government spending or healthcare.

I did say majority and they show that most of the growth was Government and Healthcare.