President Donald Trump has asked for more time on the US economy after it contracted for the first time in three years, stoking recession fears.
He told business leaders that the contraction was misleading, blaming the drop on companies stockpiling imports ahead of the imposition of his tariffs.
“This is Biden’s economy because we took over on January 20th,” Trump said. “I think you have to give us a little bit of time to get moving.”
According to the US commerce department, the economy shrank at an annual rate of 0.3%, a sharp downturn after 2.4% growth in the previous quarter.
$8 Trillion in Investment Promised
Trump said $8 trillion (£6tn) of inward investment had been promised, arguing it would restore American manufacturing strength.
Speaking at a White House event attended by business leaders, Trump promoted future investments in key sectors such as technology, healthcare, and infrastructure.
He introduced CEOs including Hyundai’s Jose Munoz, Toyota’s Ted Ogawa, and Johnson & Johnson’s Joaquin Duato.
Democrats Reject Trump’s Blame on Biden
Trump’s claim that the economic data reflected the policies of President Joe Biden drew immediate backlash from Democrats.
Congressman Hakeem Jeffries, minority leader of the US House of Representatives, responded:
“This is not Joe Biden’s economy, Donald, it is your economy.”
“It is the Trump economy, it is a failed economy and the American people know it.”
Trade War and Tariffs Shake Global Markets
The economic downturn comes in the aftermath of Trump’s aggressive trade policies, including import taxes that have disrupted global trade and markets.
Trump enacted 10% levies on imports from nearly all countries, with a 90-day pause on higher tariffs set to expire in July.
A 25% tariff has been imposed on Mexico and Canada. The tariffs on Chinese goods are even steeper—up to 145%. In retaliation, China slapped a 125% tax on American products.
Trump’s administration stated that when the new tariffs are added to existing ones, the levies on some Chinese goods could reach 245%.
Shrugging Off Toy Shortages
Earlier in the day, Trump appeared on television with cabinet members and dismissed concerns about shortages of goods like toys due to the US-China trade war.
“Well, maybe the children will have to have two dolls instead of 30 dolls, you know?” he said. “And maybe the two dolls will cost a couple of bucks more than they would normally.”
Trump Pushes for Tax Bill
At the White House event, Trump also urged Congress to pass his tax bill, which includes trillions of dollars in tax and spending cuts.
The proposal, however, is facing resistance from both Democrats and some Republicans.
As Trump marked his 100th day in office, opinion polls pointed to rising public dissatisfaction with his handling of the economy.
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