{"id":306,"date":"2025-05-29T13:23:20","date_gmt":"2025-05-29T13:23:20","guid":{"rendered":"http:\/\/hamanship.com\/?p=306"},"modified":"2025-06-02T15:34:20","modified_gmt":"2025-06-02T15:34:20","slug":"hit-by-trump-trade-wars-u-s-economy-falls-0-2-in-first-quarter-an-upgrade-from-initial-estimate","status":"publish","type":"post","link":"http:\/\/hamanship.com\/index.php\/2025\/05\/29\/hit-by-trump-trade-wars-u-s-economy-falls-0-2-in-first-quarter-an-upgrade-from-initial-estimate\/","title":{"rendered":"Hit by Trump trade wars, U.S. economy falls 0.2% in first quarter, an upgrade from initial estimate"},"content":{"rendered":"<p><strong>By PAUL WISEMAN, AP Economics Writer<\/strong><\/p>\n<p>WASHINGTON (AP) \u2014 The U.S. economy shrank at a 0.2% annual pace from January through March, the first drop in three years, as <a href=\"https:\/\/apnews.com\/article\/trump-tariffs-trade-court-0392dbd59f548e49ad4f64254ae3f94a\">President Donald Trump\u2019s trade wars<\/a> disrupted business, the government said Thursday in a slight upgrade of its initial estimate.<\/p>\n<p>First-quarter growth was brought down by a surge in imports as companies in the United States hurried to bring in foreign goods before the president imposed massive import taxes.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/interactives.ap.org\/embeds\/WdDPM\/6\/\" width=\"100%\" height=\"625px\" scrolling=\"yes\" class=\"iframe\" allowtransparency=\"1\" id=\"683dc40a7adeb\" allowfullscreen=\"yes\" allow=\"geolocation\"><\/iframe><\/p>\n<p>The January-March drop in gross domestic product \u2014 the nation\u2019s output of goods and services \u2014 reversed a 2.4% gain in the fourth quarter of 2024. Imports grew at a 42.6% pace, fastest since third-quarter 2020, and shaved more than 5 percentage points off GDP growth. Consumer spending also slowed sharply.<\/p>\n<p>And federal government spending fell at a 4.6% annual pace, the biggest drop in three years.<\/p>\n<p>Trade deficits reduce GDP. But that\u2019s mainly a matter of mathematics. GDP is supposed to count only what\u2019s produced domestically. So imports \u2014 which the government counts as consumer spending in the GDP report when you buy, say, Costa Rican coffee \u2014 have to be subtracted out to keep them from artificially inflating domestic production.<\/p>\n<aside class=\"related left\">\n<h2 class=\"widget-title\" data-curated-ids=\"\" data-relation-type=\"automatic-primary-section\">Related Articles<\/h2>\n<ul>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/06\/02\/today-in-history-june-2-queen-elizabeth-ii-crowned\/\" title=\"Today in History: June 2, Queen Elizabeth II crowned\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tToday in History: June 2, Queen Elizabeth II crowned\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/06\/01\/today-in-history-june-1-priceless-recordings-destroyed-in-universal-studios-fire\/\" title=\"Today in History: June 1, priceless recordings destroyed in Universal Studios fire\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tToday in History: June 1, priceless recordings destroyed in Universal Studios fire\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/31\/today-in-history-may-31-the-tulsa-race-massacre-begins\/\" title=\"Today in History: May 31, the Tulsa Race Massacre begins\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tToday in History: May 31, the Tulsa Race Massacre begins\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/30\/weld-el-paso-aurora-sanctuary-county-removal-trump\/\" title=\"El Paso, Weld counties \u2014 along with Aurora \u2014 are removed from DHS&#8217;s list of immigration &#8216;sanctuary jurisdictions&#8217;\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tEl Paso, Weld counties \u2014 along with Aurora \u2014 are removed from DHS&#8217;s list of immigration &#8216;sanctuary jurisdictions&#8217;\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/30\/alaska-trapped-by-boulder\/\" title=\"A 700-pound boulder pins Alaska man face-down in a glacier creek for three hours\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tA 700-pound boulder pins Alaska man face-down in a glacier creek for three hours\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<\/ul>\n<\/aside>\n<p>The first-quarter import surge likely won\u2019t be repeated in the April-June quarter and therefore shouldn\u2019t weigh on GDP.<\/p>\n<p>From January through March, business investment surged 24.4%. An increase in inventories \u2014 as businesses stocked up ahead of the tariffs \u2014 added more than 2.6 percentage points to first-quarter GDP growth.<\/p>\n<p>A category within the GDP data that measures the economy\u2019s underlying strength rose at a 2.5% annual rate from January through March, down from 2.9% in the fourth quarter of 2024 but still solid. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.<\/p>\n<p>Trump\u2019s tariffs have added considerable uncertainty to the economic outlook. He has imposed 10% tariffs on almost every country on earth in addition to levies on steel, aluminum and autos. A federal court on Wednesday <a href=\"https:\/\/apnews.com\/article\/trump-tariffs-trade-court-0392dbd59f548e49ad4f64254ae3f94a\">blocked the 10% tariffs<\/a> as well as specific taxes on Canadian, Mexican and Chinese imports, saying the president had overstepped his authority.<\/p>\n<p>Thursday\u2019s report was the second of three Commerce Department estimates of first-quarter GDP. The final version arrives June 26.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By PAUL WISEMAN, AP Economics Writer WASHINGTON (AP) \u2014 The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"_links":{"self":[{"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/posts\/306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/comments?post=306"}],"version-history":[{"count":1,"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/posts\/306\/revisions"}],"predecessor-version":[{"id":307,"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/posts\/306\/revisions\/307"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/media\/305"}],"wp:attachment":[{"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/media?parent=306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/categories?post=306"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/hamanship.com\/index.php\/wp-json\/wp\/v2\/tags?post=306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}