Trump Blames Biden as U.S. Economy Shrinks Amid Escalating Tariff War
Donald Trump has blamed Joe Biden for a surprise contraction in the U.S. economy during the first quarter of the year, despite mounting evidence that his own aggressive tariff measures have weighed heavily on growth.
Official figures from the U.S. Bureau of Economic Analysis show GDP fell by 0.3% in the first three months of 2025 — the first economic contraction since 2022. The downturn coincided with the rollout of Trump’s “Liberation Day” tariffs, which began with levies on Canada, Mexico, and China in February, and later expanded to include metals and the automotive sector.
Markets reacted swiftly to the data: Wall Street stocks opened lower, and the FTSE 100’s record-setting 13-day rally was under threat, as global investors absorbed the implications of the slowdown.
Despite the timing, Trump insisted the decline had “nothing to do with tariffs,” instead blaming what he called the “Biden overhang” in a Truth Social post, accusing the former president of leaving behind weak economic foundations.
Analysts attribute the downturn primarily to a surge in imports, as businesses rushed to stockpile goods ahead of the tariffs, which subtract from GDP calculations. The contraction marks a sharp reversal from the 2.4% growth seen in the final quarter of 2024.
A significant factor in the economic decline was also a 5.1% drop in federal spending, driven by Elon Musk’s Department of Government Efficiency (Doge), which has been aggressively cutting public sector costs.
