{"id":1053757,"date":"2025-06-26T14:55:35","date_gmt":"2025-06-26T18:55:35","guid":{"rendered":"https:\/\/democrats.org\/?p=1053757"},"modified":"2025-06-26T14:55:36","modified_gmt":"2025-06-26T18:55:36","slug":"new-report-trump-tanks-economic-growth-as-prices-rise-consumers-cut-back-and-trade-deficits-explode","status":"publish","type":"post","link":"https:\/\/democrats.org\/news\/new-report-trump-tanks-economic-growth-as-prices-rise-consumers-cut-back-and-trade-deficits-explode\/","title":{"rendered":"NEW REPORT: Trump Tanks Economic Growth As Prices Rise, Consumers Cut Back, and Trade Deficits Explode"},"content":{"rendered":"\n
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In response to the Bureau of Economic Analysis\u2019 final <\/em>Q1 GDP growth estimate<\/em><\/a>, <\/em>DNC Chair Ken Martin released the following statement:<\/em><\/strong><\/p>\n\n\n\n

\u201cTwo words describe Donald Trump\u2019s economy: negative growth. Trump promised a new golden age \u2014 yet the economy is shrinking, prices are rising, trade deficits are growing, and Americans everywhere are bracing for a recession. While the economy shrinks, Trump is instead focused on passing another round of tax breaks for his ultra-wealthy donors while cutting essential programs that everyday Americans rely on. This failed presidency has been nothing more than a series of broken promises, and the American people know a scam when they see one \u2014 that\u2019s exactly why Trump\u2019s approval numbers are tanking as fast as his economy. Make no mistake, Republicans\u2019 disastrous agenda will cost them at the ballot box.\u201d <\/p>\n\n\n\n

NEW REPORT: Donald Trump\u2019s failing agenda shrank the economy as prices continue to rise and Americans cut back, bracing for recession. <\/strong><\/p>\n\n\n\n

U.S. Bureau of Economic Analysis<\/a>: \u201cReal gross domestic product (GDP) decreased at an annual rate of 0.5 percent in the first quarter of 2025<\/strong> (January, February, and March), according to the third estimate released by the U.S. Bureau of Economic Analysis. In the fourth quarter of 2024, real GDP increased 2.4 percent. \u2026 <\/p>\n\n\n\n

\u201cReal final sales<\/strong> to private domestic purchasers, the sum of consumer spending and gross private fixed investment [was] \u2026 revised down 0.6 <\/strong>percentage point from the previous estimate. \u2026<\/p>\n\n\n\n

\u201cThe price index for gross domestic purchases increased 3.4 percent<\/strong> in the first quarter, revised up 0.1 percentage point from the previous estimate. The personal consumption expenditures (PCE) price index increased 3.7 percent<\/strong>, and the PCE price index excluding food and energy increased 3.5 <\/strong>percent, both 0.1 percentage point higher than previously estimated.\u201d <\/strong><\/p>\n\n\n\n

Heather Long, Washington Post<\/a>: \u201cThe final measure of US Q1 GDP came in at -0.5% –>worse than expected.<\/strong><\/p>\n\n\n\n

\u201cTake a look at consumer spending. It turned out to be a [lot] weaker than initially thought. That\u2019s worth watching.\u201d<\/strong><\/p>\n\n\n\n

Reuters<\/a>: \u201cU.S. trade policies will likely slow down global economic growth and rekindle inflation<\/strong> in the United States, where there is a 40% probability of a recession<\/strong> in the second half of this year, JPMorgan analysts said<\/strong> on Wednesday.<\/p>\n\n\n\n

\u201cU.S. economic growth is expected at 1.3% this year, down from a 2% forecast<\/strong> at the beginning of 2025, with higher U.S. tariffs seen as adding negative shocks to the economy,<\/strong> the bank said in a mi-year outlook research note.\u201d <\/p>\n\n\n\n

BROKEN PROMISES: After spending the campaign promising to slash the trade deficit, Trump tanked American exports dramatically while reliance on imported foreign goods increased. <\/strong><\/p>\n\n\n\n

Donald Trump<\/a>: \u201c[O]ur trade deficits are \u2026 killing jobs, killing factories, and killing America\u2019s economic future<\/strong> \u2026 trade deficits are also known as losses. \u2026 Under my leadership we will end \u2026 trade deficits.\u201d<\/strong> <\/p>\n\n\n\n

U.S. Census Bureau<\/a>: \u201cThe international trade deficit was $96.6 billion in May, up $9.6 billion<\/strong> from $87.0 billion in April. Exports of goods for May were $179.2 billion, $9.7 billion less than April exports.\u201d<\/strong> <\/p>\n\n\n\n

Walter Bloomberg<\/a>: \u201c*US MAY GOODS EXPORTS FALL 5.2% M\/M, LARGEST DROP SINCE 2020\u201d<\/strong><\/p>\n\n\n\n

As Americans struggle to get by, economists are warning that Trump\u2019s disastrous agenda will bring more inflation, higher unemployment, and slower growth. <\/strong><\/p>\n\n\n\n

Time Magazine<\/a>: \u201c<\/strong>Canned foods, cars, houses, and a range of other goods could soon get more expensive as businesses face a newly doubled tariff rate of 50% for steel and aluminum imports.\u201d <\/strong><\/p>\n\n\n\n

New York Times<\/a>: \u201cNearly a quarter of consumers using buy now, pay later loans finance groceries, up from 14 percent a year ago. \u2026  <\/strong><\/p>\n\n\n\n

\u201c[P]ay later plans for day-to-day essentials is a troubling sign that more consumers are financially stressed. \u2026 <\/strong><\/p>\n\n\n\n

\u201cFood prices are 28 percent higher than they were in 2020,<\/strong> according to the Bureau of Labor Statistics.\u201d <\/p>\n\n\n\n

Wall Street Journal<\/a>: \u201cThe U.S. Economy Is Headed Toward an Uncomfortable Summer<\/strong>\u201d <\/p>\n\n\n\n

\u201cBusinesses are warning that constantly shifting trade policies are interfering with their ability to plan for the future<\/strong>, leading to hiring and investment freezes.\u201d <\/p>\n\n\n\n

Wall Street Journal<\/a>: \u201cOn average, Americans should count on their electricity bills in June, July and August rising 4% from last year \u2026\u201d <\/strong><\/p>\n\n\n\n

Reuters<\/a>: \u201cFederal Reserve Bank of New York President John Williams expects slower growth and higher inflation this year due in large part to trade tariffs \u2026<\/strong><\/p>\n\n\n\n

\u201cWilliams said that as a result he expects growth to slow considerably this year<\/strong> to around 1%, with the unemployment rate rising from its current 4.2% level to 4.5% by year\u2019s end.<\/strong> The official also expects that inflation will rise to 3% as President Donald Trump\u2019s tariffs drive up prices \u2026\u201d<\/strong><\/p>\n\n\n\n

Bloomberg<\/a>: \u201cFederal Reserve Governor Michael Barr said he anticipates tariffs will drive up inflation <\/strong>and expressed support for a wait-and-see approach to interest-rate adjustments. \u2026<\/p>\n\n\n\n

\u201cBarr said [Trump\u2019s] levies may cause the economy to slow and unemployment to rise \u2026\u201d<\/strong> <\/p>\n\n\n\n

Federal Reserve Bank of Richmond<\/a>: \u201cRecord Concern about Tariffs Expected to Increase Costs and Prices, Reduce Hiring and Investment\u201d <\/strong><\/p>\n\n\n\n

POLLING: The American people are overwhelmingly rejecting Trump\u2019s failed economic agenda. <\/strong><\/p>\n\n\n\n