Trump apologises for US GDP decline at start of term

The Republican billionaire, who has vowed to make the United States richer, faced figures Wednesday showing a decline in the country's GDP in the first quarter, while the US economy was still thriving at the end of 2024.

GDP, which measures the creation of national wealth, declined in the first three months of the year covering the start of Donald Trump's second term, whose tariff policy sent shockwaves around the world and within his own country.

At an annualized rate, the preferred measure in the United States, GDP contracted by 0.3%, according to an initial estimate published Wednesday by the Department of Commerce.

This result - the first decline in US GDP since 2022 - is significantly lower than the expectations of the majority of analysts, who nevertheless anticipated a serious slowdown (GDP up 0.4%) for the world's largest economy.

"Our country is going to take off economically, but first we have to get rid of the remnants of Joe Biden," President Trump said on his Truth Social platform, which this week celebrates the first 100 days of his second term, which began on January 20.

"It's going to take a while, it has nothing to do with customs duties, it's just that he left us with bad statistics," the head of state said, urging his fellow citizens to "BE PATIENT!!!"

A little later, at the Council of Ministers, he appeared confident, boasting of the arrival of massive investments in the United States.

He claimed that China, on the other hand, was "stunned" by the tariffs he imposed, with "factories closing" across the country "because people no longer buy their products."

"I didn't want this to happen," he added, saying he "greatly appreciates" his Chinese counterpart Xi Jinping and "hopes" for an agreement with Beijing.

But the Democratic opposition believes that it is the American economy that is heading for disaster.

Senate opposition leader Chuck Schumer said that "Donald Trump must acknowledge his failure, reverse course, and immediately fire his economic team."

- The weight of the import rush -

The decline in GDP in the first quarter is largely explained by the calculation rule according to which imports are deducted from the production of national wealth.

But overseas purchases surged at the start of the year, as businesses and consumers rushed to acquire certain goods before they became more expensive under new tariffs.

The downside: advance purchases mean less spending later on, which could lead to further violent movements in future publications.

The US economy was previously more than humming along, with growth of 2.4% in the last quarter of 2024 (annualized), full employment, and inflation on the verge of being brought under control.

According to another release on Wednesday, job creation in the U.S. private sector slowed sharply in April, falling short of expectations.

Conversely, the American president finds comfort in the inflation figures.

The official PCE index published Wednesday shows that inflation slowed in March to +2.3% year-on-year, before the imposition of the bulk of the new customs duties.

This lull is largely the result of falling gas and oil prices, fueled by growing doubts about the health of the global economy.

"I generally believe that the impact of presidents on economic performance is overestimated, especially during their first 100 days," Tara Sinclair, an economics professor at George Washington University, told AFP before the data was released.

"But this time," she added, "it's different, because the surge in imports is a direct result of buyers' avoidance strategy against the president's tariffs."

Since April, the government has significantly increased customs duties on foreign products and more than doubled surcharges on those from China.

Beijing retaliated with further tariffs, enough to curb US exports, a driver of growth.

Americans' consumption - another fuel of GDP - is also under scrutiny, as several recent barometers show that their confidence in the future has plummeted.