President Donald Trump on Wednesday counseled patience, cast blame and claimed victory in the face of a first-quarter U.S. economic contraction and tariffs that have taken a bite out of his popularity, saying a resurgence was around the corner.
The U.S. Commerce Department's advance gross domestic product data on Wednesday pointed to the first quarterly decline in three years as businesses imported a flood of goods to avoid higher costs from Trump's pending tariffs. Some economists pointed to robust consumer spending and private investment as a sign that growth could soon rebound, reports Reuters.
Trump and his aides struggled to coalesce around a message about the GDP number, simultaneously saying it was bad because of Biden administration policies but also good because of Trump's efforts.
"You probably saw some numbers today, and I have to start off by saying that's Biden," Trump said to reporters, without elaborating as he referred to his Democratic predecessor.
He then said the figure was due to "distortions" from imports, inventories and government spending, components that figure into the GDP calculation. He also celebrated a surge in business investment that some economists attribute to tariff-related spending.
"We had numbers that, despite what we were handed, we turned them around and we were getting them really turned around," Trump said during a two-hour-long Cabinet meeting broadcast live.
Earlier, Trump trade adviser Peter Navarro said, "This was the best negative print, as they say in the trade, the GDP - that I've ever seen in my life. It really should be very positive news for America."
Navarro also discounted the GDP number, saying it declined because businesses were buying goods from abroad to get ahead of tariffs, an idea that clashed with Trump's claim on social media that tariffs played no role in declining stock markets.
The varying explanations came as Trump crossed the symbolic milestone of 100 days in office and polls showed rising public discontent over the Republican's handling of the economy.
A Reuters/Ipsos poll completed on Sunday showed 42 percent of respondents approve of Trump's performance in office, and 53 percent disapprove. The approval rate stood at 47 percent in the hours after his January 20 inauguration.
The share of respondents who approve of Trump's economic stewardship declined a percentage point to 36 percent from the prior week, the lowest level in his current term or in his 2017-2021 presidency, while disapproval rose 5 points to 56 percent.
Recession fears
Fears of a recession have intensified amid President Donald Trump’s global trade war, with steep tariffs prompting warnings that trade—especially with China—may come to a near halt. The uncertainty has rattled markets and businesses. Some economists attribute the first-quarter economic slowdown to Trump, noting that GDP had grown at an average annualized rate of 2.9 percent during the latter half of Joe Biden’s presidency.
"This isn't going to reverse because of the internal properties of the economy," said Joseph Brusuelas, chief economist at RSM US LLP. "This is all policy induced, so unless the tariffs are walked back rapidly, it's just simply going to be too late to avoid an economic downturn." He added: "We'll be talking about a recession starting around midyear."
Democrats blamed Trump. "This is not Joe Biden's economy, Donald, it is your economy," said House Minority Leader Hakeem Jeffries. "It is the Trump economy, it is a failed economy and the American people know it."
Trump initially blamed market declines on Biden but later claimed he was taking neither credit nor "discredit." Meanwhile, Treasury Secretary Scott Bessent praised Trump’s policies, citing improved affordability and ambitions to lead in AI and manufacturing.
Bd-pratidin English/FNC
