The U.S. economy contracted by 0.3% in the first quarter due to a surge in imports as businesses rushed to bring in goods before President Trump's tariffs took effect. This unexpected economic downturn has caused U.S. stock markets to decline significantly, with major indices like the S&P 500 and the Dow Jones experiencing substantial drops. Trump's trade policies, including high tariffs on Chinese imports, have created uncertainty for American businesses, leading to cancellations and postponed expansions. Despite the economic challenges, Trump denied responsibility, attributing the economic direction to Biden's influence while maintaining that tariffs will boost domestic growth. Protests and political tensions continue over budget delays and policy decisions, reflecting broader discontent with the administration's approach to economic and foreign policy issues.

The U.S. economy shrank by 0.3% from January to March, marking the first decline in three years, primarily due to an increase in imports as companies tried to bring in foreign goods before Trump's tariffs were fully implemented.

The contraction surprised economists who anticipated modest growth, especially after the previous year's strong economic performance, leading to a significant drop in U.S. stock markets including the S&P 500 and the Dow Jones Industrial Average.

Trump's trade policies, particularly the imposition of high tariffs on Chinese goods, have led to uncertainty and disruptions for American businesses, causing many to cancel orders and hunker down amid fears of rising prices and empty shelves.

Despite the economic downturn, Trump refused to take responsibility, attributing the situation to Biden's influence, and asserted that the tariffs will ultimately lead to a domestic economic boom.

Political tensions are high as Democrats vow to fight back against Trump's policies, highlighted by protests in Washington, D.C., over delayed budget passages and dissatisfaction with the administration's handling of economic issues.

The White House is undergoing changes with Trump planning renovations and additions such as a ballroom, while his administration continues to face criticism for its handling of immigration and international relations.

Consumer spending slowed sharply despite a temporary cooling of inflation, which economists predict might rise again due to the widespread tariffs, raising concerns about the potential for a recession.