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The U.S. economy unexpectedly contracted by 0.3% in Q1 2025, marking the first negative growth since Q1 2022. This downturn is attributed to a surge in imports as businesses rushed to avoid President Trump's new tariffs. While consumer spending slowed, it remained positive. Economists suggest the import surge may be temporary, with the potential for growth to rebound in subsequent quarters. The administration is currently negotiating the future of its trade policy after imposing temporary tariffs.

Prepared by Christopher Adams and reviewed by editorial team.