Trump's Inaugural Quarter: A Dive in U.S. Economy Amid Major Tariff Changes

U.S. economic growth experienced a significant downturn in the first quarter of 2025, largely influenced by President Donald Trump’s expansive tariff measures. According to the Commerce Department, the gross domestic product contracted at an annual rate of 0.3 percent, following a robust 2.4 percent growth in late 2024. Experts warn that this sluggish performance may foreshadow a recession. EY chief economist Gregory Daco noted that businesses expedited inventory to evade tariffs, potentially setting up a more pronounced demand drop in Q2.