Trump Says ‘Be Patient,’ Blames Biden ‘Overhang’ as Econ. Shrinks/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump urged Americans to stay patient after new data showed the U.S. economy contracted 0.3% in Q1. He blamed the slowdown on the “Biden overhang” and insisted his tariffs had “nothing to do” with the downturn. Trump predicted a historic boom once businesses adjust to his trade policies.
Trump on Tariffs and GDP: Quick Looks
- U.S. GDP shrank 0.3% in Q1, first decline since 2022
- Trump blames “Biden’s stock market” for the contraction
- Says economic boom “will take a while”
- Claims tariffs are attracting record business investment
- Commerce Dept: economy hit by pre-tariff import surge
- April payrolls rose just 62,000, missing forecasts
- Trump insists tariffs aren’t the cause, calls for patience
- Wall Street drops sharply after GDP, jobs data
- First economic contraction under Trump’s second term
- Business leaders meeting with Trump amid growing uncertainty
Trump Says ‘Be Patient,’ Blames Biden ‘Overhang’ as Econ. Shrinks
Deep Look
Trump Says “Be Patient” After Economy Shrinks, Blames Biden ‘Overhang’
WASHINGTON, D.C. — Just hours after the Commerce Department reported that the U.S. economy shrank for the first time in three years, President Donald Trump defended his sweeping tariffs and blamed the downturn on “bad numbers” left behind by his predecessor.
In a fiery post on Truth Social, Trump responded to the 0.3% annualized GDP contraction in Q1 2025 by shifting blame to former President Joe Biden and promising that an economic rebound is on the horizon.
“This is Biden’s Stock Market, not Trump’s,” Trump wrote. “Our Country will boom, but we have to get rid of the Biden ‘Overhang.’”
Trump emphasized that the contraction had “NOTHING TO DO WITH TARIFFS,” insisting instead that it was due to legacy issues and that his trade policy would ultimately trigger a historic economic upswing.
“This will take a while … but when the boom begins, it will be like no other. BE PATIENT!!!” he added.
First Decline Since 2022
The latest data from the U.S. Department of Commerce revealed the economy contracted for the first time since early 2022, dragged down largely by a flood of imports. Businesses rushed to stock up on foreign goods in anticipation of Trump’s steep tariffs, which are now being rolled out across major sectors.
In a separate release, private payroll data from ADP showed just 62,000 jobs added in April — about half of what analysts expected — marking the slowest monthly hiring since July 2024.
Markets Tumble
Financial markets reacted sharply to the reports. The Dow dropped over 700 points at the open, while the S&P 500 fell 2%, snapping a six-day winning streak. The tech-heavy Nasdaq tumbled 2.5%, led by major losses in artificial intelligence and retail stocks.
Economists warned of growing fears of “stagflation” — a dangerous mix of stagnant growth and rising inflation — which could severely limit the Federal Reserve’s options for policy intervention.
“Even if today’s weak GDP may have partially reflected companies trying to get ahead of tariffs, it was still a stagflation warning shot,” said Ellen Zentner, chief economic strategist at Morgan Stanley.
Trump: “Tariffs Will Pay Off”
Despite widespread concern, Trump continues to defend his aggressive trade stance, including 145% tariffs on Chinese imports. He claimed those policies are encouraging companies to return manufacturing to the U.S.
“Companies are starting to move into the USA in record numbers,” Trump wrote.
However, critics note that Trump’s erratic rollout of tariffs has created widespread uncertainty, discouraging investment and destabilizing both markets and consumer sentiment.
Biden Overhang vs. Trump Accountability
Trump’s attempt to pin the downturn on Biden comes amid increased scrutiny of his economic management. While Trump insists the tariffs will fuel long-term growth, economists say the short-term disruptions — including spiking costs and broken supply chains — are already having real consequences.
Meanwhile, Trump continues to tout falling prices and increased investment as early signs of success. At a rally on Tuesday night marking his 100th day in office, he claimed,
“Prices are coming way down — that’s what I’ve done.”
Business Meeting and Political Risks
Trump is set to meet Wednesday with more than two dozen business leaders at the White House, though the morning’s grim economic headlines may complicate those discussions.
The administration faces a pivotal moment. If economic indicators continue to falter, Trump’s promises of a “great American revival” may be increasingly hard to sell — even to his base.
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