World:US economy shrinks for first time since 2022 as Trump praises tariffs
By Zuleihat Owuiye, Mamos Nigeria
The US economy shrank at an annual rate of 0.3% in the first three months of 2025, marking the first time it has shrunk since 2022. The decline is attributed to firms stockpiling imports ahead of President Donald Trump’s tariffs. Despite this, Trump praised tariffs and businesses investing domestically at an “Invest in America” event at the White House.
Trump claimed that gasoline prices have decreased since he took office, but data from the American Automobile Association (AAA) shows that the average price for regular gas is currently $3.16, slightly up from $3.125 when Trump entered office. Trump also claimed that egg prices are lower, but the average national price for a dozen large Grade A eggs hit a record high of around $6.23 in March.
The US and Ukraine have agreed to form a “Reconstruction Investment Fund” to collaborate on accelerating Kyiv’s recovery. The deal aims to ensure that “mutual assets, talents, and capabilities” are utilized effectively.
Trump blamed the previous administration for the economic decline, saying he inherited “the wreckage of four years of economic disaster.” He urged Congress to pass his tax bill, which includes trillions of dollars in tax and spending cuts. Trump also introduced business executives attending the event, including Hyundai CEO Jose Munoz and Nvidia CEO Jensen Huang.
Democratic leaders slammed Trump’s handling of the economy, saying costs for the average American are “up and up and up.” Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries condemned Trump’s tenure as an “abject failure” and a “disaster.”
Businesses are preparing for price increases due to tariffs, with some stockpiling goods to avoid higher costs. Kristin Roehmer, owner of a toy store in Scottsdale, Arizona, said notifications of price increases were being emailed to her constantly, with some manufacturers increasing prices by 7-30%.
