Washington — April 30, 2025
President Donald Trump on Wednesday acknowledged that his tariffs could raise consumer costs and reduce product variety, but insisted the trade war is hurting China more than the United States. His comments came hours after a government report revealed a 0.3% contraction in U.S. GDP for the first quarter—Trump’s first 100 days back in office.
Facing questions about rising prices, Trump told his Cabinet, “Maybe kids will have two dolls instead of 30,” but stressed that tariffs are forcing companies to return manufacturing to U.S. soil. “China’s having tremendous difficulty. Their factories are not doing business,” he said.
Markets dipped following the GDP report, which economists attributed to a surge in pre-tariff imports. Trump blamed his predecessor, Joe Biden, for economic weakness, posting, “This is Biden’s Stock Market, not Trump’s,” on social media.
Democrats pushed back, warning that Trump’s economic agenda risks triggering a deeper recession. “In just 100 days, costs are rising, growth is falling, and middle-class families are feeling the squeeze,” said Sen. Jeff Merkley (D-Ore.).
White House adviser Peter Navarro downplayed the contraction as a temporary effect, saying tax cuts will drive growth in coming months. But with inflation concerns mounting and investor confidence shaken, Trump’s economic strategy faces increasing scrutiny.
