US Economy Contracts 0.3% in Q1 2025, Tariffs Weigh On Economic Growth

The US economy experienced a contraction of 0.3% in the first quarter of 2025, according to data from the Commerce Department, raising concerns about the impact of tariffs. This unexpected decline marks the worst economic performance since early 2022, triggering drops in stock markets and fueling fears of a prolonged slowdown. The Federal Open Market Committee, citing trade’s influence on inflation and growth, has also expressed concern over the GDP slump.