On the same day, the U.S. economy shrank for the first time in three years, President Donald Trump dismissed concerns that Americans would pay for his massive tariffs.
Speaking at a cabinet meeting at the White House on Wednesday, Trump answered questions about his tariffs on China, acknowledging that it could cost more for parents and their children.
"Someone said, 'Oh, the shelves will be open,'" Trump told reporters. "Well, maybe the kids will have two dolls, not 30 dolls, maybe two dolls will cost more."
The president blames former President Joe Biden, claiming that Biden puts the United States at "fiscal risk" during his tenure. The strategy Trump used earlier on Wednesday would shift criticism as the Commerce Department reported GDP fell 0.3% in the first quarter of 2025, marking the first economic contract signing since 2022. In response to the news, the Dow Jones lowered 600 points, while the Nasdaq and S&P 500 fell by two percentage points.
"This is Biden's stock market, not Trump's stock market," the president wrote. "I didn't take over until January 20. Tariffs will begin soon and companies start entering the United States with record numbers." Trump insisted that the stock market outbreak "has nothing to do with tariffs" and assured Americans that they just need to "wait patiently!!!"
Trump promised to lower the price of eggs and other groceries during his re-election campaign "on the first day", and wage growth is falling as inflationary indicators accelerate.
according to The New York Timesas companies predict product shortages and higher prices, some business owners have consulted bankruptcy lawyers.
Some Republican lawmakers have opposed the president's attempt to evade blame. "By introducing tariffs to the extent he has, it's President Trump's economy," Sen. "I think it's unreliable to say that President Biden or any former administration has caused what is going on."
The first 100 days after Trump's return to the White House, the president and his administration undermined the federal government in the crusades to exert executive power over the American people. On Wednesday, Trump was filled with cheers for reporters: “I really believe the next 100 days will be better than that.”