The U.S. economy shrank in the first three months of 2025, contracting by an annualized rate of 0.3 percent — a stark reversal after nearly three years of solid growth, as tariff-related uncertainty upended spending patterns and raised fears of an impending recession.
– Abha Bhattarai writing in the Washington Post
[Graph and text from the Washington Post]
The trade deficit — the difference between incoming and outgoing goods — is the widest it has ever been, which is expected to be a significant drag on economic growth. Sales of American-made goods to other countries help bolster GDP, while purchases of foreign-made products count against it.
[Graph and text from the Washington Post]