President Donald Trump has asked for more time on the US economy as it contracted for the first time in three years, stoking recession fears. He said the figure was misleading because companies had stockpiled imports ahead of his imposition of tariffs. Trump, however, said $8tn (£6tn) of inward investment had been promised, which he argued would restore American manufacturing prowess. The US economy contracted at an annual rate of 0.3%, the US commerce department said, a sharp downturn after growth of 2.4% in the previous quarter. It comes as Trump marks 100 days in office, with opinion polls indicating public discontent over his economic stewardship. Speaking on Wednesday afternoon at a White House event attended by business leaders, Trump blamed his Democratic predecessor, President Joe Biden, for the disappointing gross domestic product data. "This is Biden's economy because we took over on January 20th," Trump said. "I think you have to give us a little bit of time to get moving." It comes in the aftermath of the Republican president's import taxes, which have disrupted global trade and markets. Trump's finger pointing at Biden drew scorn from Democrats. Congressman Hakeem Jeffries, minority leader of the US House of Representatives, said: "This is not Joe Biden's economy, Donald, it is your economy. "It is the Trump economy, it is a failed economy and the American people know it." At Wednesday's White House event, Trump touted planned investments in technology, healthcare and infrastructure. He introduced CEOs of major companies, including Hyundai's Jose Munoz, Toyota's Ted Ogawa, and Johnson & Johnson's Joaquin Duato. Trump also urged Congress to pass his tax bill, which includes trillions of dollars in tax and spending cuts, but faces opposition from Democrats and some Republicans. At a television appearance earlier in the day with cabinet members, Trump played down fears of shortages of items such as toys, as trade between the US and China falls sharply. "Well, maybe the children will have to have two dolls instead of 30 dolls, you know?" he said. "And maybe the two dolls will cost a couple of bucks more than they would normally." Trump has enacted 10% levies on almost all countries importing to the US, after announcing a 90-day pause on higher tariffs. The amount paid by these countries could change after the period expires in July. Another 25% tariff has been imposed on Mexico and Canada. The levies on China, however, have led to an all-out trade war with the world's second largest economy. Trump imposed import taxes of up to 145% on Chinese goods coming into the US and China hit back with a 125% tax on American products. His administration said when the new tariffs were added on to existing ones, the levies on some Chinese goods could reach 245%.
Trump tells business chiefs he needs 'little bit of time' as US economy shrinks
TruthLens AI Suggested Headline:
"Trump Requests Time to Address US Economic Contraction Amid Recession Fears"
Bbc News
6.6
TruthLens AI Summary
President Donald Trump recently addressed concerns regarding the contraction of the US economy, which experienced a decline for the first time in three years, with a reported annual shrinkage of 0.3%. During a White House event attended by business leaders, he attributed this downturn to misleading economic figures and highlighted that companies had stockpiled imports in anticipation of his tariffs. Trump emphasized that despite the current economic challenges, a promised $8 trillion in inward investment would help restore American manufacturing capabilities. He framed the situation as a consequence of the previous administration, asserting that the current economic issues are a result of President Joe Biden's policies, saying, 'This is Biden's economy because we took over on January 20th.' Despite these claims, public opinion polls suggest growing dissatisfaction with Trump's economic management as he approaches the 100-day mark in office.
In his remarks, Trump introduced several CEOs from major corporations and advocated for the passage of his tax bill, which proposes significant tax cuts and spending reductions, though it faces opposition from both Democrats and some Republicans. He dismissed fears of shortages in consumer goods, suggesting that children might just have to settle for fewer toys at slightly higher prices. The backdrop of his comments includes a trade war with China, marked by significant tariffs on both sides, with the US imposing levies of up to 145% on Chinese imports and China retaliating with a 125% tax on US products. As the administration navigates these economic challenges, Trump's insistence on needing more time to rectify the situation has drawn criticism from Democrats, who argue that the economic difficulties are a direct result of his policies, leading to a polarized political landscape regarding the state of the economy.
TruthLens AI Analysis
The article presents a narrative centered around President Donald Trump's remarks regarding the U.S. economy's contraction, which has sparked concerns about a potential recession. Trump's request for more time to stabilize the economy amid a shrinking GDP is juxtaposed with his insistence on attributing the economic challenges to his predecessor, President Joe Biden. This framing reflects a strategic attempt to shift blame and rally support from business leaders while downplaying negative economic indicators.
Economic Context and Political Implications
The contraction of the U.S. economy by 0.3% represents a significant shift from the previous quarter's growth, creating a backdrop of uncertainty. Trump's assertion that the economic data is misleading due to stockpiled imports before tariffs indicates a defensive stance aimed at protecting his administration's image. By linking the economy's struggles to Biden's presidency, Trump seeks to manipulate public perception and deflect criticism, portraying himself as a leader still capable of revitalizing American manufacturing through promised investments.
Public Sentiment and Media Narrative
The timing of this announcement, coinciding with Trump's first 100 days in office, highlights a critical moment for his administration. Polls showing public dissatisfaction with his economic management suggest that the message is directed at both the business community and the general populace. The backlash from Democratic leaders reinforces the narrative of accountability, with Congressman Hakeem Jeffries rejecting Trump's attempts to dissociate from the current economic situation. This exchange illustrates the contentious political climate and the potential for escalating partisan divisions as economic challenges become more pronounced.
Potential Consequences for Society and the Economy
The implications of this news are multifaceted, potentially influencing consumer confidence, investment decisions, and broader economic policy debates. Trump's call for Congress to pass his tax bill, which faces bipartisan opposition, signals an urgent need for legislative support to address economic difficulties. The focus on technology, healthcare, and infrastructure investments presents a strategic vision, but the feasibility and timing of such initiatives amidst a contracting economy are uncertain.
Investor Reactions and Market Impact
This announcement could have considerable ramifications for financial markets, particularly in sectors reliant on consumer spending and international trade. Companies mentioned, such as Hyundai and Toyota, may experience fluctuations in stock performance as investors gauge the economic outlook and the effectiveness of Trump's proposed policies. The narrative surrounding tariffs and trade can influence market sentiment, with potential ripple effects across various industries, particularly those tied to imports and exports.
In summary, the article serves to frame Trump's economic narrative as one of resilience amid adversity, aiming to reassure stakeholders while deflecting blame onto a political opponent. The manipulative elements in the language used, such as finger-pointing and reliance on promised investments, highlight an effort to maintain political capital and public support during challenging economic times. The reliability of the information hinges on the context and framing, suggesting a need for critical examination of the underlying data and broader economic conditions.