U.S. growth slowed sharply last quarter, claiming that the world's tariffs would strengthen the U.S. economy.

GDP is a key measure of overall U.S. economic growth, down 0.3% in the first quarter of the year, down from 2.4% in the last quarter of 2024. Contraction - The first since early 2022, putting the United States on the brink of a technological recession, defined as negative growth.

The decline in activity was a huge decline in consumer sentiment, with the lowest level since the 1990 recession falling by 32%.

Trump spent most of the first quarter threatening and briefly implementing the expropriation of Canada and Mexico and targeting China with higher export responsibilities.

In the second quarter days (none of today’s GDP readings are covered), he ordered higher tariffs on goods in most parts of the world and then returned tariffs from all countries except China. For now, Trump is charging 10% universal tariffs on imported goods in most parts of the world and 145% tariffs on Chinese imports.

Amid the profound fluctuations in the U.S. stock market, Trump put aside a wave of so-called "mutual tariffs" that as high as 49% of specific countries, he stopped in 90 days.

He offered some relief to U.S. automakers who faced a 25% tariff on all auto imports on Tuesday, signing an executive order that they would get credit if they imported auto parts but gathered cars in the U.S.

Last week, stocks gathered on news that Trump said tariffs on China (which already exempt certain electronics) would be "significantly" lowered as the White House negotiated a deal with China, although Trump said the tariffs would not be completely eliminated. China has imposed 125% tariffs on U.S. goods in retaliation against Trump's tariffs.

While the White House has said in recent weeks that Trump’s tariffs were originally a negotiating strategy, leaders around the world have said they will retaliate if Trump continues to try to bully them for negotiations.

"If you choose to remain silent, compromise and cringe, it will only make bullies want to push luck more," Chinese Foreign Minister Wang Yi said on Monday.

Trump is sensitive to criticizing his tariffs and their impact on the economy. At one point last month, Trump threatened to take Jerome Powell from the U.S. Federal Reserve chairman after Powell said Trump's tariffs could lead to permanent price increases.

After the market fell, Trump finally retreated and told reporters that he had "unintentionally" fired Powell.