Overview

• The US economy shrank by 0.3% in Q1 2025, driven by a 41% surge in imports as businesses stockpiled goods ahead of planned tariffs.
• President Trump has paused most tariffs at a 10% rate until July, framing the GDP contraction as temporary and blaming the previous administration's policies.
• Republican senators, including Ron Johnson and Mike Rounds, have voiced concerns about the economic impact of the tariff strategy and called for clearer direction.
• Consumer spending showed mixed signals, with modest quarterly growth of 1.8% but a strong surge in March as buyers rushed to make purchases before tariffs took effect.
• The Federal Reserve faces a complex decision as it weighs persistent inflation, softening labor market data, and the risk of a potential recession.