US President Donald Trump defended his policies after new data showed a 0.3% decline in the US economy during the first quarter of 2025. He quickly blamed former President Joe Biden for the slowdown.
During a Cabinet meeting, Trump said, “You probably saw some numbers today… and I have to start by saying, that’s Biden; that’s not Trump.” He also criticized the Federal Reserve and attacked “unfair trade policies.”
Trump Doubles Down on TruthSocial
Before the meeting, Trump posted on TruthSocial to support his claims. He wrote, “This is Biden’s Stock Market, not Trump’s. I didn’t take over until January 20th. Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers.”
He added, “Our Country will boom, but we have to get rid of the Biden ‘Overhang.’ This will take a while and has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers. But when the boom begins, it will be like no other. BE PATIENT!!!” When asked about the market dip, Trump replied, “I’m not taking credit or discredit for the stock market. I’m just saying that we inherited a mess.”
Trump Tells Americans to Be Patient
At the Cabinet meeting, Trump urged people to stay calm. He said Americans must adjust to the effects of tariffs.
He explained, “Somebody said, ‘Oh, the shelves are going to be open.’ Well, maybe the children will have two dolls instead of 30 dolls. And maybe the two dolls will cost a couple bucks more than they would normally.”
Economy Shrinks in First Quarter
Earlier on Wednesday, the Bureau of Economic Analysis reported that the US economy shrank from January to March. This marked the first dip after three years of strong growth. The report showed that Trump's policies may have started to affect the economy. Although Trump said the tariffs had not yet taken effect, economists warned that just the fear of new duties had already hurt growth.
Democrats Fire Back at Trump
After Trump blamed Biden, Democrats responded quickly. House Minority Leader Hakeem Jeffries said, “This is not Joe Biden’s economy, Donald. It is your economy. It is the Trump economy.” Meanwhile, the Senate voted on a resolution to remove Trump’s tariffs announced on “Liberation Day.” The vote ended in a 49-49 tie. Three Republicans—Lisa Murkowski, Susan Collins, and Rand Paul—voted with Democrats.
Rand Paul Predicts Republican Pushback
Senator Rand Paul warned that more Republicans may oppose Trump’s trade policies if the economy stays weak. He said, “I think if we went through another quarter of negative growth and/or another scare in the marketplace, I think there will be more visible voices against the tariffs.” Trump has now completed 100 days in office. But the economic decline has raised serious concerns. Many now question whether his policies will lead to long-term growth—or deeper trouble.