The U.S. economy contracted in the first quarter as tariffs caused importers to surge shipments before higher levies took effect.

The Commerce Department's Bureau of Economic Analysis (BEA) released its third estimate for first quarter gross domestic product (GDP), which found the U.S. economy contracted at an annual rate of 0.5% in the first quarter, which runs from January through March.

Economists surveyed by LSEG had expected the economy to contract at a 0.2% rate in the quarter.

This is a developing story. Please check back for updates.

The Commerce Department released its third estimate of U.S. gross domestic product for the first quarter and found the economy contracted at an annual rate of 0.5%.{ai:summary}The U.S. economy contracted by 0.5% in the first quarter, according to the Commerce Department's Bureau of Economic Analysis. This decline was attributed to importers increasing shipments ahead of impending tariff hikes, surpassing economists' expectations of a 0.2% contraction.As the situation develops, further updates will provide more insight into the economic implications of these tariff changes. #economy

US economy shrank 0.5% in the first quarter of 2025 amid tariff uncertainty

Loading...