New Delhi: The U.S. economy slowed down in the first quarter of 2025, with GDP growth dropping to 0.3 per cent — the first decline in three months. The dip comes amid rising trade tensions driven by former President Donald Trump’s ongoing tariff war, according to advance estimates from the U.S. Bureau of Economic Analysis released on Wednesday, April 30.
Economists surveyed by Reuters had expected the U.S. economy to grow by 0.3 per cent in the January–March quarter. However, just before the official data release, a report showed the goods trade deficit hit a record high in March due to a surge in imports. This unexpected jump led many experts to sharply lower their GDP forecasts.
The economy had grown by 2.4 per cent in the previous quarter. While the latest report points to a slowdown, it may be overstating the situation—consumer spending is still growing, just at a more moderate pace.
Since Donald Trump returned to office and introduced new tariffs, many analysts have lowered their growth forecasts. Rising imports are also weighing on GDP growth, as they offset the gains made from exports in economic calculations.