NEED TO KNOW
- GDP dropped 0.5% in Q1 2025, the worst since early pandemic days.
- Consumer Spending slowed, job searches lengthened, but Trump praised the numbers as “efficient weakness.”
- Analysts blame tariffs and trade gaps; Trump blames grocery carts not being “as ambitious as they used to be.”
Consumer Confidence Collides with Price Tags
WASHINGTON, DC — The U.S. Economy slipped into reverse during the first quarter of 2025, and while economists cite high tariffs and shrinking consumer spending, President Trump offered a different take: “The economy isn’t shrinking, it’s just reclining.”
Gross domestic product fell by 0.5%, with consumer spending crawling at just 0.5% growth—its slowest pace in four years. But Trump, speaking outside a Texas Buc-ee’s, insisted, “People are just being more selective, which is a sign of luxury, not poverty.”
Tariffs Working Perfectly, Says Man Not Looking at Data
Despite signs that Trump’s tariff hikes contributed to the slowdown, the president described the policy as a “tremendous success” in “battling China with courage, corn syrup, and corporate taxes.”
Imports surged in Q1 as businesses stocked up before tariffs hit harder, leading to a trade imbalance that gutted GDP. Still, Trump claimed, “Every deficit is just a surplus with better branding.”
Fed Pretends This Is Fine
Federal Reserve officials noted that job seekers are taking longer to find employment. But San Francisco Fed President Mary Daly assured the public, “This is all consistent with the economy casually strolling toward a more sustainable pace.”
Meanwhile, new orders for durable goods jumped 16.4%, which Trump celebrated by tweeting a blurry photo of a shopping cart and writing, “Vibes = strong.”
