Trump: “BE PATIENT!” After GDP Dips
As America’s economy unexpectedly contracted for the first time in three years, President Trump calls for patience, insisting the nation is poised for a historic economic boom despite current challenges.
At a Glance
- U.S. GDP shrank 0.3% in the first quarter of 2025, the first contraction in three years
- Trump attributes economic downturn to Biden administration policies, not his tariffs
- A 41% surge in imports before tariff implementation significantly contributed to the contraction
- Despite the downturn, business investment rose 21.9%, suggesting underlying economic strength
- Trump predicts a coming economic “boom like no other” while urging Americans to be patient
Economy Shows First Contraction Since Pandemic
The U.S. economy unexpectedly contracted at a 0.3 percent annual rate in the first quarter of 2025, marking the first decline in three years. This economic downturn represents a significant shift from the 2.4 percent growth rate recorded in the final quarter of 2024. The Department of Commerce attributed the decrease primarily to a massive 41 percent surge in imports and reduced government spending, though these negative factors were partially offset by increases in business investment, consumer spending, and exports. The economic contraction caught most analysts by surprise, as economists had generally forecast continued modest growth of around 0.3 percent.
The GDP report triggered immediate market reactions, with major stock indices registering significant losses. The Dow Jones Industrial Average fell more than 600 points, while both the S&P 500 and Nasdaq Composite experienced substantial declines. Despite the contraction, some underlying economic indicators showed resilience. Consumer spending, though slowing from 4 percent to 1.8 percent between quarters, continued to expand, particularly in healthcare, housing, and utilities. Meanwhile, disposable personal income rose to 2.7 percent in the first quarter, improving from 1.9 percent in the previous quarter.
Trump Urges Patience and Optimism
In response to the economic data, President Trump took to Truth Social to reassure Americans and provide context for the contraction. He emphasized that the downturn reflects economic conditions inherited from the Biden administration rather than the impact of his recently implemented tariff policies. Trump maintained that the current economic situation and stock market volatility are attributable to his predecessor’s policies and insisted that his administration’s approach will ultimately yield strong positive results.
“This will take a while, 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!!!” – President Donald Trump.
Trump’s message consistently focused on long-term optimism, predicting that “our country will boom” once short-term adjustments settle. The President’s call for patience comes as his administration implements a series of tariff policies that have drawn both praise and criticism from economic analysts. These include a 10 percent baseline tariff on most imports, with higher rates on Chinese goods and certain automotive imports. Some economists have noted that the surge in imports during the first quarter likely reflected businesses rushing to bring in foreign products before these tariffs took effect.
Signs of Underlying Economic Strength
Despite the headline GDP contraction, several metrics indicate potential economic resilience. Business investment surged by 21.9 percent in the first quarter, a significant increase that suggests companies maintain confidence in future growth prospects. A key category that economists view as a measure of underlying economic strength rose at a 3 percent annual rate. These indicators suggest that while the overall economy contracted, important components continue to demonstrate forward momentum that could support future expansion.
“be patient” – President Donald Trump.
The administration has also been actively working on trade negotiations to mitigate potential negative effects of tariffs. Commerce Secretary Howard Lutnick recently announced a deal with an unnamed country to ease reciprocal tariffs, pending approval from their government. Additionally, Trump has paused higher tariffs on several countries to facilitate negotiations, while maintaining stricter measures on Chinese imports. The President also signed executive orders designed to provide relief to U.S.-based automotive manufacturers, part of a broader strategy to strengthen domestic production and reduce trade imbalances.
