President Donald Trump unleashed a fiery rebuke of his predecessor, pinning the blame for a shrinking economy on Joe Biden’s policies. The U.S. economy contracted in the first quarter, marking the first negative growth since early 2022. Trump’s sharp criticism came as he defended his tariff strategy, insisting it will spark a future economic surge.
According to CNBC, the Commerce Department reported a 0.3% annualized decline in gross domestic product for the first three months of the year. Trump quickly took to Truth Social, declaring the downturn as “Biden’s Stock Market, not Trump’s.” He argued that he inherited a troubled economy when he assumed office on Jan. 20.
Trump dismissed claims that his tariffs caused the economic dip, instead pointing to Biden’s lingering influence. He insisted that companies are flocking to the U.S. in record numbers due to his policies. The president promised a forthcoming economic “boom” but cautioned that patience is needed to overcome Biden’s “overhang.”
The GDP decline was driven by a flood of imports as businesses rushed to stockpile goods ahead of Trump’s proposed tariffs. A reduction in government spending, particularly in defense, also dragged down the numbers. These factors, not tariffs themselves, were the primary culprits, according to the Commerce Department.
Trump’s social media outburst followed the GDP report by less than an hour. He claimed the economic woes have “nothing to do with tariffs” and stem solely from Biden’s mismanagement. The president’s defensive tone underscored his sensitivity to economic criticism as he pushes his America First agenda.
Markets took a hit after the GDP data and lackluster corporate earnings were released. The Dow opened sharply lower, reflecting investor unease. A separate ADP report added to the gloom, showing private payrolls grew by only 62,000 in April, well below expectations.
The ADP report marked the weakest hiring gain since July 2024, down from a revised 147,000 in March. Economists had anticipated a 120,000 job increase, making the shortfall particularly stark. Some experts attribute the sluggish hiring to uncertainty surrounding Trump’s tariff plans.
Consumer confidence has also taken a beating, with many pointing to fears over the economic impact of tariffs. Despite these concerns, Trump remains steadfast in his belief that tariffs will revitalize American industry. He has consistently framed them as a cornerstone of his economic vision.
In a Tuesday speech marking his 100th day in office, Trump boasted that “prices are coming way down.” However, the GDP report revealed a 3.6% rise in the personal consumption expenditures price index, the Federal Reserve’s key inflation gauge. This uptick, compared to 2.4% in the prior quarter, undercuts Trump’s claims of falling prices.
Trump’s attempt to dodge responsibility for the economic slowdown mirrors his past efforts to claim credit for market gains. During Biden’s term, Trump asserted on Truth Social in January 2024 that rising stocks were due to his strong polling against Biden. Now, he deflects blame for the downturn onto his predecessor.
Andrew Bates, a former Biden White House spokesman, sharply criticized Trump’s narrative. Bates claimed Biden handed Trump a thriving economy that outperformed other wealthy nations. He warned that Trump’s policies are steering the U.S. toward a “Trumpcession.”
Trump’s economic messaging faces a critical test as he hosts over two dozen business leaders at the White House. The weak GDP and payroll data could overshadow the meeting, challenging his efforts to project economic strength. His insistence on blaming Biden may complicate his push to highlight positive developments.
Despite the setbacks, Trump remains optimistic about his economic strategy. He predicts that tariffs will drive unprecedented growth once fully implemented. The president urged Americans to “be patient” as his policies take effect.
Critics argue that Trump’s tariffs are fueling economic uncertainty, contributing to the very problems he blames on Biden. The import surge and declining consumer confidence suggest businesses and households are bracing for higher costs. Yet Trump maintains that his approach will ultimately deliver prosperity.
The coming months will determine whether Trump’s promised boom materializes or if economic challenges persist. For now, the president is doubling down on his anti-Biden rhetoric, framing the downturn as a temporary hurdle. His ability to navigate these headwinds will shape perceptions of his economic leadership.
