The growth in gross domestic product from January to March, reflecting the country’s production of goods and services, decreased from 2.4 percent during the final quarter of 2024. Imports reduced first-quarter growth by 5 percentage points.

Consumer spending also slowed sharply. Federal government spending plunged 5.1 per cent.

But business investment rose at a 21.9 per cent clip as companies poured money into equipment. 

Moreover, a category in the GDP data that gauges the economy’s fundamental resilience increased at a robust annual rate of 3 percent between January and March, improving from 2.9 percent in the last quarter of 2024.

This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.

Trump inherited a solid economy that had grown steadily despite high interest rates imposed by the Federal Reserve to fight inflation. 

His erratic trade policies — including 145 per cent tariffs on China — have paralysed businesses and threatened to raise prices and hurt consumers.