US Economy Contracts Amid Tariff-Driven Global Slump

The U.S. economy contracted by 0.3% in the first quarter of 2025, its first decline in three years, largely attributed to President Donald Trump's new tariffs and trade policies. Consumer confidence has dropped for five consecutive months, intensifying recession fears among businesses and households. Trump, who previously credited himself for stock market gains, is now blaming former President Joe Biden for the downturn, a stance critics call inconsistent and politically motivated. The trade war has had global effects, causing UK manufacturing exports to suffer their steepest decline in five years. U.S. companies like Etsy are promoting domestic sourcing to offset higher import costs triggered by tariffs. Economists warn that persistent tariffs will likely prolong economic challenges in the coming months.