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.