Michelle ThompsonPresident Donald Trump has requested additional time to address the US economy, which contracted for the first time in three years, fueling recession concerns.
He dismissed the data as misleading, attributing it to businesses stockpiling imports ahead of his tariff imposition. Trump also pointed to $8 trillion in promised investments, claiming this would revive American manufacturing.
The US economy shrank by 0.3% annually, according to the US Commerce Department, following a 2.4% growth in the previous quarter. This contraction coincided with Trump marking 100 days in office, amid growing public dissatisfaction with his economic management, as indicated by opinion polls. During a White House event attended by business leaders, Trump blamed his Democratic predecessor, President Joe Biden, for the disappointing GDP figures.
“This is Biden’s economy because we took over on January 20th,” Trump said. “I think you have to give us a little bit of time to get moving.”
This statement follows the impact of Trump’s import tariffs, which have disrupted global trade and markets. Democrats criticized his attempt to blame Biden, with Congressman Hakeem Jeffries, Minority Leader of the US House of Representatives, countering, “This is not Joe Biden’s economy, Donald, it is your economy. It is the Trump economy, it is a failed economy, and the American people know it.”
At the White House event, Trump highlighted planned investments in technology, healthcare, and infrastructure. He introduced CEOs from major companies, including Hyundai’s Jose Munoz, Toyota’s Ted Ogawa, and Johnson & Johnson’s Joaquin Duato.
Trump also pushed Congress to pass his tax bill, which includes significant tax cuts and spending reductions, despite opposition from both Democrats and some Republicans. Earlier in the day, during a TV appearance with cabinet members, Trump downplayed concerns about shortages of goods like toys as trade with China sharply declines.
“Well, maybe the children will have to have two dolls instead of 30 dolls, you know?” he remarked. “And maybe the two dolls will cost a couple of bucks more than they would normally.”
Trump has imposed a 10% tariff on imports from nearly all countries, following a 90-day pause on higher tariffs, with potential changes after this period ends in July. Additionally, a 25% tariff has been placed on Mexico and Canada, while the tariffs on China have triggered a full-blown trade war, with taxes on some Chinese goods reaching as high as 245%.
