US economy contracts 0.2% in Q1 amid tariff-driven disruption;...

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US economy contracts 0.2% in Q1 amid tariff-driven disruption; imports, weak spending weigh on growth

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The US economy experienced a 0.2% contraction in the first quarter of 2025, primarily due to a surge in imports ahead of President Trump's tariff hikes. This decline, the first in three years, was partially offset by strong business investment and inventory buildup. A federal court blocked Trump's tariffs, adding uncertainty to the economic outlook.

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