Trump Tariffs Blamed for Economic Downturn

The U.S. economy contracted by 0.3% in the first quarter of 2025, recording its worst quarterly performance in three years and sparking a significant sell-off on Wall Street. Economists largely attribute the downturn to a surge in imports ahead of President Donald Trump's new tariffs, which have heightened market and business uncertainty. Trump has blamed former President Joe Biden for the economic decline, while asserting that his own policies will eventually spur growth and urging patience. Many analysts, including former Trump supporter Dave Portnoy, have criticized Trump for avoiding responsibility, arguing that the market's struggles are linked to his administration's policies. Consumer confidence has fallen to its lowest level since 2020, and fears of recession are growing among economists and investors. The economic outlook is further clouded by companies reducing earnings forecasts and consumers cutting back on spending as the impact of tariffs and trade policy continues to unfold.