Trump Asks for ‘Little Bit of Time’ as U.S. Economy Shrinks

 The U.S. economy shrank by 0.3% in the first quarter of 2025, marking its first contraction in over two years. The downturn is mainly due to a spike in imports, as companies rushed to buy goods ahead of new tariffs introduced by President Trump’s administration. These tariffs, aimed at countries like China, Canada, and Mexico, are part of his broader trade strategy.

In response, Trump told top business leaders that the U.S. is going through a "transition period" and asked for a “little bit of time” to bring back economic strength. He dismissed fears of a recession, saying the current slowdown is temporary and part of fixing past trade issues.

However, business leaders and economists are worried. Net exports reduced GDP significantly, and consumer spending growth slowed to its weakest pace since mid-2023. Federal spending also dropped due to government cutbacks.

The stock market reacted negatively, with sharp losses across major indexes. Public criticism followed, including from figures like Dave Portnoy, who blamed Trump’s tariff policies for financial losses.

Despite Trump’s reassurances, concerns are growing over whether his trade strategies might push the U.S. closer to a recession.