Trump blames predecessor as US economy hit by tariff policies

In response to Trump’s widespread disruptions caused by his tariff policies, former president Joe Biden is to blame for the decline of important economic indicators during his first months in office.

The US economy experienced its first-ever quarterly decline in three years, contracting by 0.3% in the process. The economy increased by 2.4% over the previous three months of 2024.

Trump stated in a post on his website Truth Social that “this is Biden’s stock market, not Trump’s.” “Tariffs will soon start to kick in, and businesses are registering record numbers of new business in the USA. Our nation will prosper, but we must eliminate the “Overhang” between Biden and him. This will take some time because he only left us with subpar numbers, but it will be unlike any other boom when it starts. AGREE! “!

Trump’s policies, which he introduced as president, have stymied financial markets amid concerns about an escalating trade war and uncertainty surrounding the tariff policies.

Imports increased in the first quarter as US companies sought to avoid higher costs that might come with upcoming tariff increases. However, inflation is still at a low. Consumer prices increased by 2.3 percent in March from 2.5% in February, up from 2.3 percent in February.

Press secretary Karoline Leavitt refuted Trump’s claims that Biden was to blame for any trouble in a press release from the White House, adding that the Wednesday economic report showed “strong economic momentum.”

The underlying statistics reveal the true extent of the strong momentum President Trump is delivering, Leavitt said. “It’s no surprise that the leftovers from Biden’s economic disaster have been a drag on economic growth.

The US’s declining economic indicators are attributable to Trump’s chaotic approach to tariffs, according to many economists. The S&amp, P 500 has decreased by about 7.3 percent since taking office.

According to Carl Weinberg, chief economist at High Frequency Economics, “If the blowout on trade was the result of firms pre-buying imported inputs to beat the tariffs, the decline in the trade balance will reverse in the second quarter.” That will lead to some GDP growth, the author predicts. By the end of this year, the GDP will be back in decline due to the corrosive uncertainty and higher taxes, which are a tax on imports.

Treasury Secretary Scott Bessent stated last week that current rates were not “sustainable,” suggesting that the White House might reduce tariffs with important US trading partners like China.