The US economy saw a contraction during the first quarter of 2025 (time when Donald Trump returned to Oval Office), marking the first such decline in three years, according to the US Commerce Department.

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The economy contracted by 0.3 per cent in the first quarter of this year, majorly attributed to increased imports as businesses and individuals built up inventories before US President Donald Trump's massive tariffs took effect.

However, Trump on Wednesday (April 30) dismissed the claims and blamed former president Joe Biden for it. 

Also read: Trump administration eases auto tariffs following industry pressure

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Taking on Truth Social, the US president said that this is "Biden's stock market, not Trump", adding that the US has to get rid of "Biden overhang" and the country will "boom". 

He further lauded him for bringing in the reciprocal tariffs this year, saying that tariffs will soon start kicking in and the country will boom.

"This is Biden’s Stock Market, not Trump’s. I didn’t take over until January 20th. Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden “Overhang," he said in the post. 

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Trump further asked to be "PATIENT", saying that when the boom begins, it will be like no other. 

"This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!," he claimed. 

Also read:  WATCH | China's message to 'bully' Trump amid tariff war: 'Never kneel down...kneeling only invites more bullying'

What does the report say?

The Gross Domestic Product (GDP) of the US declined at an annualised rate of 0.3% in the first quarter, according to the Commerce Department. 

This marks the first quarter of negative growth since Q1 of 2022. 

Following the release of the GDP report, the US stock futures slipped. This contraction puts the US economy on the verge of a technical recession. 

Also read: 'India-US finalise terms for trade deal': Vance's BIG ANNOUNCEMENT amid Trump tariff war