The US economy shrank in the first quarter, and the tariff policy has caused the economy to fall into a recession.

American economic experts have stated that the frequent threats of imposing tariffs on trade partners by the new US government have raised market concerns, leading to economic contraction in the first quarter. The tariff policies implemented by the US government may cause the American economy to fall into recession. Gary Hufbauer, a senior researcher at the Peterson Institute for International Economics and former US Treasury official, has stated that the US tariff policy is causing significant uncertainty for business decision-makers. They are not only concerned about their own supply chains and customers, but also about the impact on other areas. This has led to businesses delaying investment decisions and consumers losing confidence, resulting in delays in purchasing large items. He believes that the US economy may fall into recession in the second half of this year.