US economy fares worse than estimated in first quarter – DW – 06/26/2025
The Commerce Department said the economy had contracted more than previously expected. This comes as businesses stockpile goods ahead of US President Donald Trump's tariffs.
The US economy contracted more than previously estimated in the first three months this year, according to government data.
According to the Commerce Department, real gross domestic product fell by 0.5% in the first quarter of 2025, compared to the previously reported dip of 0.2%.
The decline primarily reflects downward revisions to consumer spending and exports, which were partly affected by a downward revision to imports, the Department added.
The data came after an import surge triggered by US President Donald Trump's tariffs.
This resulted in businesses stockpiling goods ahead of the tariffs, especially goods from China.
Imports expanded by 37.9%, the fastest pace since 2020, and pushed GDP down by nearly 4.7 percentage points.
The import influx is not likely to be repeated in the second quarter, and therefore it shouldn't weigh on GDP as the second-quarter growth is expected to bounce back to 3%, economists say.
To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
Trump may have backed off or postponed some of the highest tariffs due to the ongoing trade negotiations, but the July deadline for the higher tariffs to kick in is approaching — adding uncertainty to the economy.
Trump's tariffs have pushed China and the European Union into a race to find new trade partners, with EU state saying they aim to reach out to countries in the Indo-Pacific and the Global South.
Last month, Trump suspended planned 50% tariffs on the EU until July 9.
At a summit for the NATO military alliance on Wednesday, French President Emmanuel Macron called the trade war an "aberration" and called for tariffs to be dropped after NATO allies agreed to a pledge to dedicate 5% of GDP to defense spending.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
44 minutes ago
- Int'l Business Times
Hegseth Sparks Backlash After Insisting Trump's Iran Strike Was the 'Most Complex Military Operation in History': 'Not By a Long Shot'
Defense Secretary Pete Hegseth is being ridiculed by social media users after declaring that the Trump administration strike on three Iranian nuclear facilities was one of the most complex military operations in US history. Hegseth appeared before reporters at a press conference at the Pentagon on Thursday, in which he discussed the US attack on Iran's nuclear sites. "Let me read the bottom line here. President Trump directed the most complex and secretive military operation in history, and it was a resounding success resulting in a ceasefire agreement and the end of the 12 day war," Hegseth said. Social media users quickly took to online platforms to mock the Defense Secretary for his assertion. "Ah yes, the most 'secretive military operation' in history – so secret it was announced on Fox News with more theatrics than a WWE cage match. Pete looks like he's auditioning to play Patton in a school play sponsored by MyPillow," joked one user. "Nah, Ukraine planning and orchestrating the destruction of Russian bombers was far more impressive," added another. "I love our military, but this bombing run was NOT the most complex military operation in history. Not by a long shot," a third stated. "Both Dunkirk and Normandy have objections to that statement," commented a fourth. "Didn't they say Iran knew they were coming?" noted another. Iran's Supreme Leader Ayatollah Ali Khamenei stated Thursday that the impact of the US attacks on Iran's nuclear facilities was grossly overstated by the Trump administration, who claimed the strikes "completely and fully obliterated Iran's nuclear program". "They could not achieve anything significant," he said. He continued to state that the only reason the US attacked Iran was because "it felt that if it did not intervene, the Zionist regime would be utterly destroyed." "It entered the war to save them, yet it gained nothing," he said. Originally published on Latin Times
Int'l Business Times
an hour ago
- Int'l Business Times
French 'Spiderman' Scales Skyscraper to Launch World's First Action Token
Spain, Barcelona, June 26th, 2025, Chainwire In a world-first collision of raw human risk and blockchain innovation, legendary urban climber Alain Robert — known globally as the French Spiderman — is currently scaling the 116-meter Meliá Barcelona Sky Hotel, with no ropes, no harness, and no safety equipment. Clad in custom Tigershark-branded gear, Robert is joined by his son, Julien Robert, a former French Navy marine, to officially unveil $TIGERSHARK, the world's first cryptocurrency powered by real-world action. Users can watch live on X: @TigersharkHQ The Most Dangerous Crypto Launch in History Clad in custom Tigershark-branded gear, the Roberts are not just climbing — they're launching a movement. Mission 1: Spiderman & Son — The first of many high-profile extreme missions by Tigershark, a groundbreaking movement that fuses the exhilaration of extreme sports and blockchain with a global community of athletes, visionaries, and risk-takers. "We're redefining what a crypto launch looks like — not airdrops, not smoke and mirrors, but actual real-world extreme feats, true adrenaline," says Lilly Douse, spokesperson for Tigershark. A New Frontier for Crypto: Where Action Meets Utility Tigershark isn't just a token — it's an Action Economy. Whether it's big-wave surfing, free-running rooftops, or wingsuit dives through canyon walls, every feat drives the economy. Holding tokens gets users closer to the action: private events, behind-the-scenes missions, athlete drops, and access to the heartbeat of a movement that's rewriting the rules. 'We're betting it all on something rare in today's world: guts and grits.' added Douse. Beyond the Climb: What's Next Alain Robert's climb is the first of many high-profile missions. Tigershark is already in discussions with elite athletes across base jumping, wingsuiting, parkour and motocross to headline future feats. With a roadmap that includes strategic sponsorships, branded merchandise, global events, and athlete-backed products, Tigershark is evolving into a full-fledged action-sports brand powered by crypto. About Tigershark Tigershark is a pioneering movement at the intersection of extreme sports and blockchain. From skyscraper climbs to death-defying missions, Tigershark transforms raw human courage into real crypto value. Users can learn more at About Alain Robert Alain Robert, now in his early 60s, has climbed over 150 of the world's tallest buildings without safety gear, including the Burj Khalifa, Eiffel Tower, and Petronas Towers. Today's climb marks a new chapter — one that connects his daredevil legacy to the world of crypto. Users can follow the Action: Watch Live on X: Trading: MEXC Exchange: Web: Enquiries: James Henderson james@ Mohammad Aldaejy mohammed@ Contact James Henderson james@
Int'l Business Times
2 hours ago
- Int'l Business Times
Netanyahu Seeks To Postpone Trial Summons After Trump Backing
Israeli Prime Minister Benjamin Netanyahu asked a court on Thursday to postpone his testimony in his long-running corruption trial, after US President Donald Trump called for the case to be cancelled altogether. Trump's move in support of Netanyahu over the case drew criticism from some Israeli politicians, including a member of the Israeli leader's own coalition and the leader of the opposition. It came days after Trump and Netanyahu declared victory over Iran in a 12-day conflict that saw Israel bombard the Islamic republic and US planes also drop powerful missiles on its nuclear installations. In a filing to the tribunal, Netanyahu's lawyer Amit Hadad said the premier's testimony should be delayed in light of "regional and global developments". "The court is respectfully requested to order the cancellation of the hearings in which the prime minister was scheduled to testify in the coming two weeks," the filing said. It said Netanyahu was "compelled to devote all his time and energy to managing national, diplomatic and security issues of the utmost importance" following the conflict with Iran and during ongoing fighting in Gaza where Israeli hostages are held. Trump on Wednesday described the case against Netanyahu as a "witch hunt". In a message on his Truth Social platform, Trump said the Netanyahu trial "should be CANCELLED, IMMEDIATELY, or a Pardon given to a Great Hero", after the end of the war with Iran. Netanyahu on Thursday thanked Trump for his "heartfelt support for me and your incredible support for Israel and the Jewish people". "I look forward to continue working with you to defeat our common enemies, liberate our hostages and quickly expand the circle of peace," Netanyahu wrote on X, sharing a copy of Trump's Truth Social post. Israeli opposition leader Yair Lapid said in an interview with news website Ynet: "We are thankful to President Trump, but... the president should not interfere in a judicial trial in an independent country." Israel's longest-serving prime minister, Netanyahu has denied any wrongdoing in the trial, which has been delayed many times since it began in May 2020. In a first case, Netanyahu and his wife, Sara, are accused of accepting more than $260,000 worth of luxury goods such as cigars, jewellery and champagne from billionaires in exchange for political favours. In two other cases, Netanyahu is accused of attempting to negotiate more favourable coverage in two Israeli media outlets. One of Netanyahu's coalition allies, Simcha Rothman of the far-right Religious Zionism party, also called for Trump to stay out of the court case. "It is not the role of the president of the United States to interfere in legal proceedings in the State of Israel," said Rothman, who chairs the Israeli parliament's judicial affairs committee. Rothman, a vocal critic of what he argues is judicial overreach, however said that "the management of Netanyahu's cases is transforming the image of the State of Israel from a regional and global power into a banana republic." National Security Minister Itamar Ben Gvir, the leader of another far-right party in Netanyahu's coalition, backed Trump's call, branding the trial politically motivated. Foreign Minister Gideon Saar said it was "distorted, unreasonable, contrary to the basic sense of justice" to continue Netanyahu's trial while Israel is at war, also backing Trump's call to drop the charges. During his current term since late 2022, Netanyahu's government has proposed a series of far-reaching judicial reforms that critics say were designed to weaken the courts. Netanyahu has requested multiple postponements in the proceedings, most recently citing the ongoing war in Gaza since April 2023, later in Lebanon and earlier this month in Iran.
