President Donald Trump on Wednesday sought to downplay fears over a shrinking U.S. economy, insisting a turnaround is coming despite a first-quarter contraction that has raised recession alarms.
The U.S. Commerce Department reported a dip in gross domestic product (GDP), the first quarterly decline in three years, as businesses scrambled to import goods ahead of impending tariffs. The unexpected drop comes just as Trump marked his 100th day in office, a symbolic milestone now shadowed by sliding approval ratings.
“This is Biden’s fault,” Trump claimed during a lengthy Cabinet meeting broadcast live, though he also blamed “distortions” in trade and inventory metrics. “We were handed a mess, and we’re turning it around,” he added.
Trade adviser Peter Navarro called the figures “the best negative print” he’d ever seen, suggesting the drop was a side effect of strong business investment. However, analysts were not convinced.
“This is policy-induced,” said RSM chief economist Joseph Brusuelas. “Without backing down from the tariffs, we’re looking at a recession midyear.”
Polls indicate growing public unease. A Reuters/Ipsos survey showed Trump’s approval on economic matters dipping to 36%, with disapproval climbing to 56%.
Democrats were quick to respond. “It is the Trump economy, and it is failing,” said House Minority Leader Hakeem Jeffries.
Despite mixed signals, Treasury Secretary Scott Bessent praised Trump’s vision, citing stable mortgage rates and falling energy costs. Yet food prices continue to rise at a 3% annualized rate, according to government data.
While the administration touts future growth powered by manufacturing and AI investments, markets remain jittery and economists warn the worst may be yet to come.
