The impact of President Donald Trump’s tariffs could soon be visible in the US GDP growth 2025 figures, with experts predicting a sharp slowdown in economic activity. The upcoming report on GDP is expected to show the country’s economy grew at an annual rate of just 0.4% in the first quarter. This marks a dramatic drop from 2.4% in the final quarter of 2024 and represents the slowest growth since 2022.
Economists suggest that this deceleration could be attributed to an influx of imports. As people rushed to buy foreign goods before tariffs were enforced, these imports ultimately subtracted from the GDP, affecting the overall economic output.
US GDP Growth 2025: Potential Risks of Trade Policies
Some forecasters even predict that the decline will be more severe than the consensus. The Federal Reserve Bank of Atlanta’s GDP Now tool currently estimates a 2.5% contraction for the first quarter of 2025. This would mark the first shrinkage of the economy since 2022, signaling the deeper implications of Trump’s tariff policies.
The GDP report will be one of the first solid indicators of how the tariffs are reshaping the economy, even as other major indicators like unemployment and inflation remain relatively steady. While surveys suggest growing pessimism, it’s the hard data that will likely confirm just how much the tariffs are weighing down the economy.
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Source: www.investopedia.com
