The U.S. economy contracted in the first quarter of 2025 for the first time in three years, reflecting a surge in imports ahead of President Trump’s tariffs and a slowdown in consumer spending.

The U.S. economy contracted 0.3% in the first quarter of 2025, the first negative reading since the Covid pandemic, according to an initial measurement by the Commerce Department.

For the first time in three years, the U.S. economy shrank, with the gross domestic product declining by 0.3% in the first quarter of 2025. This marked the first contraction of the U.S. economy during a quarter since the first quarter of 2022,