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4/30/2025

U.S. GDP Contracts in Q1 as Tariff-Driven Import Surge Disrupts Growth

The U.S. economy unexpectedly contracted in the first quarter of 2025, shrinking at a 0.3% annualized pace, according to Commerce Department data released Wednesday. The headline miss was driven largely by a record-breaking surge in imports, as companies raced to secure goods before a new wave of tariffs took effect under President Trump’s trade policy agenda.

3 min read