In the first three months of President Donald Trump's second term, the condition of the US economy has come under scrutiny following a recent report. According to initial data from the US Bureau of Economic Analysis, the US economy experienced a decline of 0.3 percent in the first quarter, covering January to March.
The US Commerce Department reported that during the previous quarter, October to December 2024, the GDP was growing at a rate of 2.4 percent. However, this growth has reversed in the subsequent quarter.
Analysts say that while this decline may not be drastic, the impact of President Trump's tariff announcements is evident. Additionally, a reduction in government expenditure has contributed to this economic downturn.
Interestingly, even before the implementation of Trump's tariffs, American companies had increased imports. Analysts say this could be a major factor in the 40 percent increase in imports reported during this quarter.
Prakash Kumar Pandey