President Donald Trump on Wednesday, April 30, 2025 blamed former President Joe Biden for the contraction of Gross Domestic Product (GDP) in the first quarter of 2025, asserting that his tariff policy had no bearing on the economic setback.
In a message posted on his Truth Social platform, Trump stated that the negative data reflects “Biden’s markets, not Trump’s,” and asked citizens to be patient.
Has NOTHING TO DO WITH TARIFFS, only that he (Biden) left us with bad numbers, but when the boom starts, it will be like no other. BE PATIENT!
Trump en Truth Social
What happened to the economy?
According to the Bureau of Economic Analysis (BEA), U.S. GDP fell 0.3% between January and March 2025, representing the first quarterly economic contraction since 2022.
This figure contrasts sharply with the 2.4 % growth recorded in the last quarter of 2024, under the Biden administration.
Factors noted by the BEA include:
Increase in imports, which negatively affects the GDP calculation.
Reduction in public spending, in line with the first budgetary decisions of the new government.
Although President Trump took office on January 20, he claims that these results are a direct consequence of his predecessor’s policies, not the measures implemented in his first 100 days in office.
Tariffs and economic policy
One of the most visible policies of the new government has been the return to a high tariff agenda, not only towards China, but also towards countries in Europe and Latin America.
However, Trump claims that these tariffs have not yet taken full effect, and that when they do, the U.S. will attract investment and jobs “in record numbers.”
“Our country will prosper, but we have to get rid of Biden’s ‘negative effect,'” he declared.
During a cabinet meeting to commemorate the first 100 days in office, Trump assured that his administration has already boosted investments by more than $8 trillion, although he did not offer itemized figures.
He also insisted that the economy will improve as his stimulus plans based on corporate tax cuts, federal spending cuts and renegotiation of trade agreements take effect.
What does this mean for Hispanics?
For the U.S. Hispanic community, these economic movements may have mixed impacts.
On the one hand, tariff policies can make imported products more expensive, affecting the cost of living.
On the other hand, if the promises of reindustrialization materialize, job opportunities could open up, especially in sectors such as manufacturing, construction and infrastructure.
However, the uncertainty in the markets, coupled with the possibility of further cuts to social programs, worries many Latino households that rely on public services or stable incomes in economically sensitive sectors.
In a nutshell
Buzzy
U.S. GDP fell 0.3% in the first quarter of 2025.
Trump blames Biden and denies his tariff policies are behind the contraction.
Analysts point out that the uncertainty generated by the new government’s economic announcements has also affected business confidence.
The Latino community must be attentive to how fiscal and trade policies evolve, as they could have direct effects on employment, consumption and basic services.
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