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US Economy Contracts in Q1 as Tariff Policies Take Toll

First-quarter GDP shrinks by 0.3% annualized, with rising unemployment claims and reduced construction spending signaling broader economic strain.

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Händler auf dem Parkett der New Yorker Börse
Bewerberin auf einer Job-Messe in Florida
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Overview

  • The US economy contracted by 0.3% annualized in the first quarter of 2025, marking an unexpected slowdown attributed to trade policy impacts.
  • Weekly unemployment claims rose by 18,000 to 241,000, surpassing market expectations and reflecting early labor market strains.
  • US construction spending declined by 0.5% in March, adding to concerns about weakening economic activity across key sectors.
  • The White House attributed the economic contraction to policies under former President Biden, while experts highlighted the adverse effects of President Trump’s aggressive tariff agenda.
  • Economists forecast worsening economic impacts from tariff policies later in 2025, with some warning of deeper slowdowns in the coming months.