The US economy has experienced its first contraction since 2022! The sharp increase in imports is the main reason.

According to the Smart Finance and Economics APP, due to a sharp increase in imports before the implementation of tariffs, coupled with a more moderate increase in consumer spending, the US economy saw its first contraction since 2022 at the beginning of this year. This also reflects the initial chain reaction caused by Trump's trade policies. The preliminary estimate data released by the US Bureau of Economic Analysis on Wednesday, April 30, showed that the inflation-adjusted Gross Domestic Product (GDP) of the United States declined by 0.3% on an annualized basis in the first quarter, far below the average growth rate of about 3% in the previous two years.