The U.S. economy, led by the President Donald Trump administration, has declined for the last three months, according to the latest report from the Bureau of Economic Analysis released on Wednesday, April 30.
According to the report US’s economy declined by an annualised rate of 0.3 %.
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The decline is mostly due to tariff discussions led by U.S. President Donald Trump since he was re-elected in 2025. These discussions focus on imposing tariffs on all countries around the world.
The Bureau reports that the economy is slowing down because people are unsure about tariffs. This uncertainty affects how people spend money and raises worries about a possible recession.
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U.S.-Led Economy under President Donald Trump Declines
These actions have led to a large rise in imports, as companies and consumers have hurried to buy foreign goods.
The report indicates that many families and businesses in America opted to buy foreign-made products, including cars, electronics, clothing, and furniture, in anticipation of the Trump administration’s tariffs, which primarily took effect in April.
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As a result, the United States imported nearly twice as many goods as it exported in March. This imbalance has significantly hindered economic growth, as sales of American-made goods to other countries contribute positively to GDP, while purchases of foreign-made products count negatively.
The economic slowdown in the US comes at a time when President Trump has been engaging in back and fourth trade war with several countries, including China.
China Imposes 125% on American Products
On April 9, President Trump suspended the reciprocal tariffs on major U.S. trade partners, including China, which had significantly raised tariffs on Chinese imports. As a result, tariffs on most goods coming from China increased to as high as 145 per cent.
In response, Beijing imposed retaliatory tariffs of up to 125 per cent on American products.
China’s Finance Ministry called the U.S. tariffs “a joke” and stated it would not match further U.S. tariff hikes, as trade between the two nations is effectively unviable at these rates.
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The decision by Donald Trump’s administration to impose tariffs on China was made because he claimed that China has, for a long time, taken unfair advantage of the United States in trade matters.
He argued that imposing tariffs was essential for revitalising U.S. manufacturing and bringing jobs back to the country. Additionally, he proposed using revenue from the tariffs to fund tax cuts.
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