Trump Blames Q1 Slump on Biden Policies—Not Tariffs—Tells Markets to ’Wait for the Boom’

Former president shifts blame for economic dip onto current administration, dismissing tariff impacts as secondary. Markets left parsing political rhetoric versus hard data—because nothing says ’stable growth’ like betting on presidential Twitter fingers.

’Patience’ urged amid volatility—a classic hedge for when your predictions lack expiration dates. Meanwhile, Wall Street quietly recalculates exposure to both policy risk and reality.

First dip since early 2022 puts the U.S. on the brink of technical recession

The Commerce Department said the latest figure marked a sharp reversal from the 2.4% annual growth rate posted in the final quarter of last year. On the surface, the shift from a 2.4% expansion to a 0.3% contraction was shocking.

Officials noted the downturn largely reflected a surge in imports, as businesses rushed to bring in goods ahead of President Trump’s tariff increases. It was the first contraction in three years, a sign that economic activity was already softening even before the highest tariffs took effect.

This dip, the first since early 2022, places the U.S. economy on the brink of a technical recession, which is typically defined by two straight quarters of negative growth.

Consumer sentiment plunged 32% in April, falling to its lowest level since the 1990 recession. Influential economists had warned that the risk of a U.S. recession this year was close to 50%.

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