Trump’s Trade Wars Impact U.S. Economy, GDP Drops in Q1

The U.S. economy experienced a significant decline in the first quarter of 2025, with Real Gross Domestic Product (RGDP) falling at an annual rate of 0.2%. The BEA attributed this drop to increased imports and reduced government spending. This follows a strong fourth-quarter performance in 2024. Specifically, the Q1 downturn was heavily influenced by trade wars between the Trump administration and other countries during the first quarter.