President Donald Trump has asked Wall Street to give him “a little bit of time” to boost the US economy, which recorded its first contraction in three years. The Commerce Department reported Wednesday that the US gross domestic product shrank at an annual rate of 0.3%, a reversal from the 2.4% growth posted in the previous quarter. Speaking at a White House event attended by top business executives, Trump blamed his predecessor, President Joe Biden, for America’s economic slump and said citizens “have to give him a little bit of time to get moving.” The president’s comments did not please Democratic leaders, who argued that Trump, not Biden, must answer for the economic decline. “This is not Joe Biden’s economy, Donald, it is your economy,” said House Minority Leader Hakeem Jeffries. “It is the Trump economy; it is a failed economy, and the American people know it.” According to the White House Archives, former President Joe Biden left office when the national unemployment rate stood at 4.1%, capping off a term that saw the lowest average jobless rate of any presidency since the 1960s. The data also showed that inflation peaked during the post-pandemic supply chain disruptions but dropped to 2.9% at the start of 2024, a level nearing the Federal Reserve’s long-term target. Gross domestic product (GDP) growth expanded at a 3.1% annual rate, outpacing other G7 nations. Congress divided over Trump’s 100-day progress in office During Wednesday’s event, Trump defended his policies with plans for large-scale investments in infrastructure, healthcare, and technology, announcing $8 trillion in new private-sector commitments. He introduced several CEOs, such as Hyundai’s Jose Munoz, Toyota’s Ted Ogawa, and Johnson & Johnson’s Joaquin Duato, promising that the company heads would invest in America and improve the country’s manufacturing output. Yet, in Congress, the Senate narrowly rejected a proposed bill that would have blocked the POTUS from imposing trade tariffs. Congress had cast a 49-49 vote before Vice President JD Vance broke the tie to send away the liberals’ efforts against Trump’s trade policies. Three Republican senators, Rand Paul of Kentucky, Susan Collins of Maine, and Lisa Murkowski of Alaska, broke ranks to support the measure, joining all present Democrats and Independents. Senator Ron Wyden of Oregon lambasted the White House for being reckless with trade partners, saying Congress could not remain “an idle spectator in the tariff madness.” “ If it’s worse again in the second quarter, people would start asking, ‘Is it good policy, or is it a bad policy? ’” explained Senator Paul, one of the resolution’s co-sponsors. Retailers warn of goods shortages In other related news, import activity at the Port of Los Angeles, one of the nation’s busiest gateways for goods from Asia, has nosedived in recent weeks following the imposition of new tariffs on China. The drop-off is directly tied to steep tariffs now levied on imports from China, where duties on some goods have soared as high as 145%. In response, China has imposed retaliatory tariffs of up to 125% on US exports. According to supply chain firm Flexport, container bookings from China to America are down by as much as 60%. Some production is shifting to locations like Vietnam and Thailand, with bookings from those countries rising between 5% and 10%, but retailers aren’t sure it will be enough to fill the gap left by China. Despite the warnings, Trump is not worried about potential shortages, saying so during a televised appearance with cabinet members yesterday morning. “ Well, maybe the children will have to have two dolls instead of 30 dolls, you know? ” he reckoned. “And maybe the two dolls will cost a couple of bucks more than they would normally.” Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
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