The New York Real Estate guy who fances himself as a ‘Deal Maker’ and who works on his ‘Gut’….NOT ‘experts’ HAS driven the world’s BIGGEST Economy Down.….
It’s NOT Biden’s Economy Donald….
This economic slowdown came primarily from a dramatic increase in imports — which count against GDP — as businesses rushed to purchase foreign goods ahead of President Donald Trump’s promised tariffs.
A drop in government spending also weighed on growth, and separately, consumer spending slowed, especially compared with recent months, as Americans hit the brakes on large purchases.
“Growth has simply vanished,” Chris Rupkey, chief economist at Fwdbonds, a financial research firm, wrote in a note to clients after the report’s release. “Maybe some of this negativity is due to a rush to bring in imports before the tariffs go up, but there is simply no way for policy advisers to sugarcoat this.”
Financial markets recoiled at the news, with all three major indexes opening lower on Wednesday. The Dow Jones Industrial Average dropped more than 600 points in early trading, while the Nasdaq was down 2 percent.
Trump dismissed the negative GDP reading, calling it an “overhang” from the previous administration….
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Still, economists attribute recent economic shifts to tariff-related anxiety. In early 2025, families and businesses rushed to buy foreign-made goods, including industrial equipment, cars, electronics, clothing and furniture, ahead of the Trump administration’s tariffs, which largely went into effect this month. As a result, the United States imported nearly twice as many goods as it exported in March.
The trade deficit — the difference between incoming and outgoing goods — is the widest it has ever been, which is expected to be a significant drag on economic growth. Sales of American-made goods to other countries help bolster GDP, while purchases of foreign-made products count against it….
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“The weakness this quarter is also a preview of weakness in future quarters,” said Tara Sinclair, director of the Center for Economic Research at George Washington University. “We are seeing a dramatic change in people’s behavior, similar to what we saw during the shock of the pandemic. They’re front-loading purchases they might’ve made earlier in the year, and that’s very concerning for future quarters.”….
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“People are nervous: Will there be a recession? Will I lose my job? Is my 401(k) up, down or sideways? They’re trading down from their expensive steakhouse and coming to us,” he said. “We saw it during the financial crisis, and we’re seeing it now.”
Note….
The piece is incorrect on the Govt. Spending, which DID INCREASE during the last few months….
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