U.S. Economy Slips into Negative Territory as Trump Uncertainty Weighs on Growth

U.S. Economy Shrinks as Trump Policy Uncertainty Looms

The U.S. economy contracted by 0.3% in the first quarter of 2025, reflecting growing uncertainty among businesses as former President Donald Trump's potential policy shifts continue to create hesitation in investment and spending decisions. The decline marks a notable slowdown from previous quarters, with analysts pointing to concerns over trade, taxation, and regulatory changes under a possible second Trump administration. Economists warn that prolonged uncertainty could further dampen growth, though some sectors remain resilient amid fluctuating consumer demand. The data underscores the challenges facing the economy as businesses weigh risks in an unpredictable political climate.