The economy contracted 0.3% in the 1st quarter as imports surged ahead of Trump's tariffs. But underlying data showed sturdy growth, despite GDP drop.

The U.S. economy contracted at an annualized 0.3% rate in the first quarter, as a rush to import goods ahead of President Trump's tariffs weighed on economic growth, the Commerce Department said on Wednesday.

As recession fears reverberate from Washington to Wall Street, Wednesday brought the most comprehensive yardstick yet of the health of the U.S. economy yet as the government released the first estimate of the country’s gross domestic product over the first three months of 2025.