US economy contracts in Q1 as tariffs unleash flood of imports

GDP dips 0.3% as business sentiment and consumer confidence wither

A cargo ship enters the Port of Elizabeth marine terminal in New Jersey. The U.S. goods trade deficit surged to an all-time high in March amid record imports. © Reuters

April 30, 2025 22:43 JST

WASHINGTON (Reuters) -- The U.S. economy contracted in the first quarter, weighed down by a deluge of goods imported by businesses eager to avoid higher costs, underscoring the disruptive nature of President Donald Trump's often-chaotic tariff policy.

Gross domestic product decreased at a 0.3% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its advance estimate of first-quarter GDP on Wednesday.