President Donald Trump acknowledged the potential impact of his tariffs on the U.S. economy, suggesting American consumers might face higher prices and fewer product choices, such as having 'two dolls instead of 30.' Despite this, he asserted that China would suffer more due to the economic pressures on its manufacturing sector. The Commerce Department reported a 0.3% contraction in the U.S. GDP, attributed to a surge in imports as companies tried to avoid impending tariffs, leading to fears of a recession. Trump blamed the economic downturn on his predecessor, Joe Biden, while Democrats argued that his policies were destabilizing the economy. Amidst these economic tensions, Trump highlighted new corporate investments as a sign of future prosperity, despite criticisms of his tariff strategy and its implications for domestic manufacturing and job creation.

President Trump claimed that his tariffs might lead to fewer and more expensive products for American consumers, but argued that China would face greater economic difficulties due to the trade war.

The U.S. economy experienced a 0.3% contraction in GDP during the first quarter, partly due to a rush in imports as companies aimed to preemptively counteract the effects of new tariffs on various goods.

Trump attributed the economic challenges to former President Biden, while attempting to reassure the public that the tariffs would not lead to a recession, suggesting that the U.S. could thrive without reliance on Chinese imports.

Democrats criticized Trump's economic policies, asserting that they were causing instability and could potentially drive the economy into a recession, citing the importance of stability and certainty for fostering investment.

In response to the GDP report, Trump emphasized recent corporate investments in the U.S. as indicators of economic growth, despite the contrasting messages and economic indicators.

Commerce Secretary Howard Lutnick referenced investments in U.S. manufacturing, such as those by Taiwan Semiconductor Manufacturing Co., which were facilitated by bipartisan government support, contrary to Trump's assertion that tariffs were the main driver.

Critics argued that the economic downturn was a result of Trump's incoherent economic policies, which disrupted the previously stable economic growth trajectory he inherited from the Biden administration.