In response to the Bureau of Economic Analysis’ final Q1 GDP growth estimate, DNC Chair Ken Martin released the following statement:

“Two words describe Donald Trump’s economy: negative growth. Trump promised a new golden age — yet the economy is shrinking, prices are rising, trade deficits are growing, and Americans everywhere are bracing for a recession. While the economy shrinks, Trump is instead focused on passing another round of tax breaks for his ultra-wealthy donors while cutting essential programs that everyday Americans rely on. This failed presidency has been nothing more than a series of broken promises, and the American people know a scam when they see one — that’s exactly why Trump’s approval numbers are tanking as fast as his economy. Make no mistake, Republicans’ disastrous agenda will cost them at the ballot box.” 

NEW REPORT: Donald Trump’s failing agenda shrank the economy as prices continue to rise and Americans cut back, bracing for recession. 

U.S. Bureau of Economic Analysis: “Real gross domestic product (GDP) decreased at an annual rate of 0.5 percent in the first quarter of 2025 (January, February, and March), according to the third estimate released by the U.S. Bureau of Economic Analysis. In the fourth quarter of 2024, real GDP increased 2.4 percent. … 

“Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment [was] … revised down 0.6 percentage point from the previous estimate. …

“The price index for gross domestic purchases increased 3.4 percent in the first quarter, revised up 0.1 percentage point from the previous estimate. The personal consumption expenditures (PCE) price index increased 3.7 percent, and the PCE price index excluding food and energy increased 3.5 percent, both 0.1 percentage point higher than previously estimated.” 

Heather Long, Washington Post: “The final measure of US Q1 GDP came in at -0.5% –>worse than expected.

“Take a look at consumer spending. It turned out to be a [lot] weaker than initially thought. That’s worth watching.”

Reuters: “U.S. trade policies will likely slow down global economic growth and rekindle inflation in the United States, where there is a 40% probability of a recession in the second half of this year, JPMorgan analysts said on Wednesday.

“U.S. economic growth is expected at 1.3% this year, down from a 2% forecast at the beginning of 2025, with higher U.S. tariffs seen as adding negative shocks to the economy, the bank said in a mi-year outlook research note.” 

BROKEN PROMISES: After spending the campaign promising to slash the trade deficit, Trump tanked American exports dramatically while reliance on imported foreign goods increased. 

Donald Trump: “[O]ur trade deficits are … killing jobs, killing factories, and killing America’s economic future … trade deficits are also known as losses. … Under my leadership we will end … trade deficits.” 

U.S. Census Bureau: “The international trade deficit was $96.6 billion in May, up $9.6 billion from $87.0 billion in April. Exports of goods for May were $179.2 billion, $9.7 billion less than April exports.” 

Walter Bloomberg: “*US MAY GOODS EXPORTS FALL 5.2% M/M, LARGEST DROP SINCE 2020”

As Americans struggle to get by, economists are warning that Trump’s disastrous agenda will bring more inflation, higher unemployment, and slower growth. 

Time Magazine: “Canned foods, cars, houses, and a range of other goods could soon get more expensive as businesses face a newly doubled tariff rate of 50% for steel and aluminum imports.” 

New York Times: “Nearly a quarter of consumers using buy now, pay later loans finance groceries, up from 14 percent a year ago. …  

“[P]ay later plans for day-to-day essentials is a troubling sign that more consumers are financially stressed. … 

“Food prices are 28 percent higher than they were in 2020, according to the Bureau of Labor Statistics.” 

Wall Street Journal: “The U.S. Economy Is Headed Toward an Uncomfortable Summer” 

“Businesses are warning that constantly shifting trade policies are interfering with their ability to plan for the future, leading to hiring and investment freezes.” 

Wall Street Journal: “On average, Americans should count on their electricity bills in June, July and August rising 4% from last year …” 

Reuters: “Federal Reserve Bank of New York President John Williams expects slower growth and higher inflation this year due in large part to trade tariffs …

“Williams said that as a result he expects growth to slow considerably this year to around 1%, with the unemployment rate rising from its current 4.2% level to 4.5% by year’s end. The official also expects that inflation will rise to 3% as President Donald Trump’s tariffs drive up prices …”

Bloomberg: “Federal Reserve Governor Michael Barr said he anticipates tariffs will drive up inflation and expressed support for a wait-and-see approach to interest-rate adjustments. …

“Barr said [Trump’s] levies may cause the economy to slow and unemployment to rise …” 

Federal Reserve Bank of Richmond: “Record Concern about Tariffs Expected to Increase Costs and Prices, Reduce Hiring and Investment” 

POLLING: The American people are overwhelmingly rejecting Trump’s failed economic agenda. 

• 58% of Americans disapprove of Trump’s handling of the economy 
• 72% of Americans say they are “concerned” about their personal finances, while 65% say they are “stressed” 
• Just 39% of Americans say the economy is “good”
• 76% of people say their income is not keeping up with inflation 
• 75% of Americans agree Trump is trying to help the wealthy with his trade policies 
• Americans overwhelmingly believe Trump’s disastrous budget will help the wealthy (60%), and most think the bill will hurt lower-income Americans (54%) 

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