Trump Acknowledges Potential Costs of Tariffs Amid Economic Slowdown
President Trump admits tariffs may lead to higher prices and fewer goods, as the U.S. economy shrinks 0.3% in Q1 2025.
You might conclude that the costs and consequences of Trump's global trade war are becoming impossible to ignore—even for a president who has stubbornly refused to acknowledge the reality of his own tariff policies.
Trump admits tariffs could create shortages, hike prices
Reason·7h·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.CenterThis outlet is balanced or reflects centrist views.
Despite the obvious correlation between Trump's announcement of widespread tariffs and weeks of chaos in the stock market and elsewhere, the president thinks we have yet to see the true result of his taxes on American imports.
"Nothing to do with tariffs": Trump blames market downturn on Biden, asks Americans to "be patient"
Salon·8h·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.LeftThis outlet favors left-wing views.
Despite taking credit for a strong stock market after his election victory and inauguration, Mr. Trump on Wednesday insisted the new economic numbers had nothing to do with him, and were the fault of his predecessor.
Trump says trade policies may mean children have fewer toys that cost more
CBS News·8h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Trump's economic message contains some clashing arguments and dismisses data that raises red flags.
Trump says US kids may get '2 dolls instead of 30,' but China will suffer more in a trade war
Boston Globe·8h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.Trump’s economic message contains some clashing arguments and dismisses data that raises red flags.
Weak GDP report tied to tariffs has Trump trying to blame Biden on the state of the economy
Associated Press·12h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Trump’s insistence that he cannot be blamed for the current economic and financial landscape because he’s only been in office for a couple months is ludicrous given that one of Trump’s hallmark actions in the 100 days of his presidency was to launch an international tariff-based trade war that immediately caused markets to crater.
Trump Blames Biden, Not Tariffs, as Economy Shrinks for First Time in Years
Rolling Stone·12h·Mixed ReliableThis source has a mixed track record—sometimes accurate but also prone to bias, sensationalism, or incomplete reporting.LeftThis outlet favors left-wing views.
The report is the most comprehensive reading of how the world's largest economy is holding up as the introduction of import taxes by President Donald Trump, which has scrambled global trade and created major uncertainty.
US economy shrinks as firms import more ahead of tariffs
BBC News·12h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Trump's erratic trade policies — including 145% tariffs on China — have paralyzed businesses and threatened to raise prices and hurt consumers.
The Latest: US economy shrinks 0.3% in first quarter as Trump trade wars disrupt business
ABC News·13h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
The stock market dip came on the heels of gross domestic product (GDP) shrinking 0.3% in the first quarter, which runs from January through March, according to the Commerce Department's Bureau of Economic Analysis (BEA) advance estimate.
Trump urges 'be patient' on the economy, predicts 'boom...like no other'
Fox Business·13h·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans RightThis outlet slightly leans right.
Trump’s measures have complicated the central bank’s work.
The US economy contracted in the first quarter due to Trump’s measures
El Pais·13h·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans LeftThis outlet slightly leans left.
The slowdown in inflation could be a temporary respite until the widespread duties imposed by Trump begin to push up prices in many categories.
US inflation cools and Americans step up spending as they brace for tariff impact
Boston Herald·13h·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans RightThis outlet slightly leans right.
The surge in imports — fastest since 1972 outside COVID-19 economic disruptions — is likely to reverse in the second quarter, removing a weight on GDP.
As Trump trade wars disrupt businesses, U.S. economy shrinks 0.3 percent in first quarter
PBS NewsHour·13h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.
The U.S. stock market recorded its worst first 100 days of any presidential term since President Gerald Ford assumed office after President Nixon resigned in 1974, according to a Center for Financial Research and Analysis report.
'BE PATIENT!!!': Trump reacts to new report that the economy contracted under his watch
USA TODAY·13h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Trump’s sweeping policies — particularly cutbacks in federal jobs and spending massive tariffs and mass deportations — have injected substantial uncertainty into the economy, rattling markets, depressing consumer sentiment, and chilling employers’ hiring plans.
Consumer spending soared in March as Americans tried to get ahead of tariffs | Business
CNN·14h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.
That means the US is halfway into a ‘technical recession’ – defined by economists as two quarterly contractions in a row.
Wall Street on track for losses after US economy shrinks in first quarter of 2025 – business live
The Guardian·15h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.
Having a large volume of imports that results in a trade deficit does not necessarily signal economic weakness, assuming the imports are balanced out by consumption and investment.
U.S. GDP declines 0.3% as imports surged ahead of Trump's tariffs
NBC News·15h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
However, more abrupt shifts in trade policy risk increasing the uncertainty that has paralyzed businesses and worried consumers.
President Donald Trump’s tariffs loom over the economy as shipments from China fall
Chicago Tribune·15h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.However, consumer spending, which accounts for more than two-thirds of economic activity, surged 0.7% last month after an upwardly revised 0.5% gain in February, the Commerce Department's Bureau of Economic Analysis said Wednesday.
Trump Blames Biden for Wobbly Stock Market
Newsmax·17h·Mixed ReliableThis source has a mixed track record—sometimes accurate but also prone to bias, sensationalism, or incomplete reporting.RightThis outlet favors right-wing views.
Summary
In April 2025, China's manufacturing contracted with a Purchasing Managers' Index of 49.0 amid escalating U.S. tariffs. Concurrently, the U.S. economy shrank by 0.3%, marking its first contraction in three years as businesses hastily imported goods prior to tariff implementation. Despite inflation cooling at 2.3% year-on-year and a 0.7% increase in consumer spending, President Trump acknowledged that tariffs may result in fewer goods and higher prices. He framed these consequences as less impactful on American consumers compared to the challenges faced by China's economy, while Democrats criticized his economic policies as damaging and potentially recessionary.
Perspectives
China's manufacturing activity has contracted significantly due to US tariffs, with the Purchasing Managers' Index (PMI) dropping to a 16-month low, indicating decreased export orders and production.
The trade war between China and the US is causing a major slowdown in China's economy, as American businesses cancel orders and delay expansion plans, showing a negative sentiment in the market.
Despite some measures taken by the Chinese government to stimulate the economy and support exports, the ongoing trade tensions and tariff impacts suggest a challenging economic outlook for China.
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