U.S. Economy Contracts Due to Trump’s Policies: Expert
(MENAFN) According to an expert, President Donald Trump's implemented policies since assuming office in January have resulted in a 0.3% contraction of the U.S. economy during the first quarter.
This downturn marks the first shrinkage in 12 quarters, following a 2.4% growth in the final quarter of 2024 and an overall 2.8% growth for the year. This recent contraction is the first instance since the first quarter of 2022.
Analysts are now pointing to macroeconomic data as evidence of Trump's policies' impact, sparking concerns of a potential recession. The key factors contributing to this contraction include a slowdown in consumer spending and a sharp decline in federal expenditures.
Furthermore, the trade balance was negatively affected by U.S. businesses accelerating imports to circumvent impending tariffs.
Zafer Ergezen, a futures and commodity markets expert, stated that this economic contraction was anticipated following Trump's election, particularly given the president's initiation of trade wars, which were expected to hinder global trade.
“Trump triggered an economic contraction while trying to ‘make America great again’,” Ergezen remarked, referencing Trump's well-known slogan.
“The slowdown in global trade was expected to come with Trump’s trade and political policies but we started to see the first signs of the impact in the US,” he further noted.
Ergezen further explained that the increased tariffs and additional import taxes are rendering certain products "impossible to import" due to escalating costs, subsequently dampening demand.
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