Donald Trump shrank the U.S. economy .5% in the first quarter of the year. The economy performed far worse than projected under the weight of Trump’s massive tariffs, which squeeze small businesses and tax American households.
The new data showed consumer spending slowed sharply to 0.5 percent, down from 4 percent in late 2024, and well below previous estimates.
The news of the shrinking Trump economy comes on the heels of an analysis conducted by the Peterson Institute for International Economics (PIIE) showing that under five different scenarios, Trump’s tariffs will result in slower U.S. economic growth over the next ten years and higher inflation this year.
The study found that U.S. economic growth is weaker and inflation is higher in all five scenarios compared to a world without Trump’s tariffs, with losses increasing as the tariffs and retaliation expand.
“Trump is stirring up global chaos to cover for the fallout of his own economic disaster, but no stunt can hide what business owners and working families are living through in the Trump economy,” said American Bridge 21st Century spokesperson Brandon Weathersby. “Americans were promised jobs, higher wages, and real growth. Instead, they got taxes, inflation, and a president more focused on headlines than delivering on his promises to the people who trusted him.”
Published: Jun 26, 2025