President Donald Trump attempted to shift the narrative on the U.S. economy after a Commerce Department report showed that it had contracted during the first quarter of the year. In a press conference at the White House on Wednesday, Trump blamed his predecessor, President Joseph R. Biden Jr., for the economic downturn.
Trump was joined by business representatives who he claimed were planning new investments in the United States. The president highlighted these representatives to foster economic optimism despite the negative report. The Commerce Department’s report indicated that the U.S. gross domestic product (GDP) declined at a 0.3% annual rate in the first quarter of 2025.
This marked the first quarter of negative growth since 2022, when Biden was in office. Trump attributed the decline to Biden’s policies, stating, “This is Biden. And you could even say the next quarter is Biden because it doesn’t just happen on a daily or an hourly basis.”
However, experts have pointed out that Trump’s comments are inaccurate.
The Commerce report suggested that the decline was partly due to a wave of imports that companies made to get ahead of Trump’s promised tariffs. Additionally, a drop in government spending, primarily in defense, also contributed to the negative GDP growth.
Blame game in economic downturn
A separate report from ADP showed that private payrolls rose by just 62,000 in April, well below the estimated increase of 120,000. This weak hiring report marked the smallest gain since July 2024. Experts attribute the declining payroll numbers and waning consumer confidence to uncertainty and fear surrounding Trump’s tariff policies.
Andrew Bates, a former White House spokesman under Biden, criticized Trump for his statements. “When Joe Biden handed Donald Trump the best-performing economy in the world, experts praised the U.S. for leaving every other wealthy nation ‘in the dust,'” Bates said. “Now we’re plummeting toward a Trumpcession,” he added.
The bad economic data could affect Trump’s meeting with White House officials later on Wednesday. His attempts to blame Biden might complicate his efforts to take credit for what he claims are a series of positive economic developments. In a speech on Tuesday evening, celebrating the 100th day of his second term, Trump boasted that “prices are coming way down,” although the latest GDP report showed the price index increasing sharply by 3.6% in the first quarter, up from 2.4% in the prior quarter.
As President Trump reaches his 100-day mark in office, he faces significant challenges in addressing the weak economic data that has emerged. The latest figures threaten to overshadow his administration’s achievements and policies, and his efforts to redirect blame may prove difficult in light of the contradictory evidence.
