U.S. economy went into reverse in the first quarter, new GDP data shows
CBSN
U.S. economic growth slowed sharply in the first quarter of 2025 as businesses rushed to stockpile goods ahead of President Trump's sweeping tariff policies.
The nation's gross domestic product — the total value of products and services — grew at a -0.3% pace, down from 2.4% in the final three months of 2024, the Commerce Department reported Wednesday in its initial GDP estimate. The U.S. economy was forecast to show 0.8% growth in the first three months of 2025, according to the average estimate of economists polled by FactSet.
The slowdown comes amid growing concerns that Mr. Trump's wide-ranging tariffs could disrupt the U.S. economy, with some economists raising the chances of the U.S. slipping into a recession in 2025. Although the Trump administration's blanket tariffs were announced on April 2 — after the end of the quarter — businesses sought to get ahead of the impact of the import duties by front-loading purchases early in the year.
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