‘That’s Biden’: Donald Trump deflects blame as US economy contracts

US President Donald Trump on Wednesday downplayed concerns over the first quarterly US economic contraction in three years, casting blame on his predecessor and insisting the country was on the verge of a rebound.“You probably saw some numbers today, and I have to start off by saying that’s Biden,” Trump told reporters, referring to the GDP figures without further explanation.
According to the news agency Reuters, the US commerce department announced that gross domestic product (GDP) fell in the first quarter, driven by a surge in imports ahead of Trump's sweeping tariffs.
The decline marked a symbolic blow just as Trump completed 100 days in office. Though some economists highlighted strong consumer spending and business investment as signs of a potential recovery, fears of recession have grown.
Despite the headwinds, Trump maintained an optimistic outlook, promising, “When the boom begins, it will be like no other. Be patient!!!”

Trump’s aides struggled to present a unified explanation, with conflicting statements about whether the downturn reflected positive underlying trends or external distortions. “We had numbers that, despite what we were handed, we turned them around,” Trump said during a televised Cabinet meeting.
He attributed the contraction to “distortions” in government spending, inventory accumulation, and imports.
Trump adviser Peter Navarro praised the GDP data despite its negative value, calling it “the best negative print... I've ever seen in my life.” He argued the dip was due to businesses rushing to import goods before tariffs took effect.
Trump’s approval rating has declined since his inauguration, with a recent Reuters/Ipsos poll showing only 42% approval overall, and just 36% support for his handling of the economy, the lowest in his current or previous term.
The US GDP contracted at an annual rate of 0.3% in Q1 2025, falling short of market expectations of 0.4% growth. The commerce department attributed the decline to increased imports, slowing consumer spending, and a drop in government expenditure.
Democrats seized on the downturn. “This is not Joe Biden’s economy, Donald, it is your economy,” said US house minority leader Hakeem Jeffries, calling it “a failed economy”.
Markets reacted sharply, with major Wall Street indices falling amid fears of a prolonged downturn. The volatility was fuelled by Trump’s tariff strategy, which some economists say could stall trade flows entirely, especially with China.
Economist Joseph Brusuelas was quoted by Reuters saying that, “This is all policy induced… unless the tariffs are walked back rapidly, it’s just simply going to be too late to avoid an economic downturn.”