Overview

• U.S. GDP shrank by 0.3% in Q1 2025, marking the first contraction since early 2022, according to the Bureau of Economic Analysis.
• Peter Navarro, a key architect of Trump’s tariff policies, argued on CNBC that the economy grew by 3% when excluding tariff-driven import surges and inventory effects.
• Navarro described the contraction as 'the best negative print' he has seen, urging markets to focus on underlying metrics rather than headline data.
• Economic analysts and commentators, including CNBC's Jim Cramer, expressed skepticism about Navarro’s framing as stock markets fell further in response to the report.
• The contraction was attributed to factors including pre-tariff import spikes, slowing consumer spending, and reduced federal outlays under Trump administration policies.