The US economy has shrank in the first three months of the year as government spending fell and imports surged due to firms racing to get goods into the country ahead of tariffs.
The economy contracted at an annual rate of 0.3%, a sharp downturn after growth of 2.4% in the previous quarter.
So, who is at fault?
You will be surprised to hear that Donald Trump doesn’t think he is, instead, he blamed former President Joe Biden’s door.
UPS
It comes as UPS has announced that it plans to cut its workforce by approximately 20,000 positions during 2025.
The company, which is the largest package delivery firm in the world, is winding down its relationship with Amazon amid growing uncertainty surrounding the Trump tariffs.
CEO Carol Tomé said on a company earnings call: “The world has not been faced with such enormous potential impacts to trade in more than 100 years.”
Political commentator Brian Tyler Cohen tweeted in response to the news: “Trump is the first president in US history to [voluntarily] cause a recession.”
Biden
Trump blamed his predecessor, Joe Biden, for the economic weakening, maintaining that his policies would drive investment in the US and an economic boom.
“This is Biden,” he said, while dismissing fears of price increases, supply shocks and shortages of items such as toys, as trade between the US and China falls sharply.
“Well, maybe the children will have to have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally.”
Meidas Touch wrote on X: “U.S. ECONOMY SHRINKS UNDER TRUMP Just months into Trump’s return to office, the U.S. economy has already reversed course—shrinking by 0.3% in the first quarter of 2025. That’s a stark contrast from the 2.4% growth rate during President Biden’s final months.”
Trump wrote on his Truth Social platform: “This is Biden’s Stock Market, not Trump’s. I didn’t take over until January 20th.
“Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers.
“Our Country will boom, but we have to get rid of the Biden ‘Overhang’.
“This will take a while, has nothing to do with tariffs, only that he left us with bad numbers, but when the boom begins, it will be like no other. Be patient!”
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Related: Trump’s UK trade deal hits skids: Brexiters in tears – here’s why
