U.S. Economy Faces First Quarterly Decline Since 2022

Washington, D.C. — The U.S. economy shrank slightly less than initially reported at the start of the year, but it marked the first quarterly decline since 2022. New data released Thursday by the Commerce Department indicated that the gross domestic product (GDP) had an annualized rate of -0.2% in the first quarter, a revision from the initial estimate of -0.3%.

This downturn reflects the impact of President Donald Trump’s aggressive tariff policies on American consumers and businesses. Trump’s tariffs have led to many companies and consumers rushing to make purchases before prices rise due to these duties, resulting in a surge of imports.

A recent federal court ruling has cast doubt on Trump’s entire trade policy, adding more uncertainty. The ripple effects of the tariffs are clear, as American households report increasing prices on many goods.

The GDP measurement includes all goods and services produced in the economy and is a key indicator of economic health. Despite the slight improvement in the GDP figure, the contraction remains a worrying sign for economic stability.

This situation continues to develop, and updates will be provided as new information becomes available.