Washington44 minutes ago
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The US economy has declined at the beginning of Donald Trump’s second term. The GDP declined by 0.3% in the first quarter of 2025.
This has happened for the first time in three years. The last year’s last quarter American economy increased at a rate of 2.4%.
According to the New York Times report, the biggest reason for the decline in GDP is a huge increase in imports.
According to experts, American companies have imported huge amounts in view of the possibilities of tariffs. Because of this, the GDP figure has come down.
Consumer spending decreased, the possibility of recession increased
Due to increasing imports of America, economic growth has also declined by 5% points. On the other hand, consumer expenses have also decreased rapidly.
According to Boston College economist Brian Betunun, Trump’s policies are a major reason behind the deteriorating condition of American economy.
Consumer spending is 70% of the US GDP, if people stop purchasing due to fear, the situation may be serious.
According to economist Joseph Bruceula, the possibility of recession in the US in the next 12 months is 55%.
Trump has increased 125% tariff on China
Trump has once again started a tariff war with China in his second term. Trump has so far increased 125% tariffs on Chinese goods. On the other hand, he has given 90 days exemption to more than 75 countries in reciperook tariff.
In the easy language of imposing 125% tariffs on China, it means that the $ 100 goods made in China will now go to the US and become $ 225. The sale of Chinese goods in the US will reduce its sales.
Trump wants these countries to give time to interact on new business agreements through prohibition on tariffs.
Why increase tariff on China
According to American Treasury Secretary Scott Besant, Trump has encouraged those countries who did not open a front against the US amidst growing trade war. Since China on Wednesday announced to increase the tariff on the US from 34% to 84%. So Trump turned 104% to 125% on China.
China is insisting on increasing new industry and innovation
China has government bonds of about 600 billion pounds (about $ 760 billion) in the US. This means that China has a great force to influence the American economy. At the same time, China has also started its preparation.
China has given an additional $ 1.9 lakh crore loan to the industrial sector. This intensified the construction and upgradation of factories here. Huawei has opened a research center for 35,000 engineers in Shanghai, 10 times larger than Google’s California headquarters. This will speed up technology and innovation capacity.