'That's Biden:' Trump blames predecessor for economy slowing and touts his tariffs
Excluding the tariff effects, the underlying economy turned in a solid showing in the first quarter
WASHINGTON — President Donald Trump urged patience after a new report showed the first decline in the U.S. economy in three years, putting blame on his predecessor while predicting that his new tariffs will lead to a boom ''like no other.''
U.S. gross domestic product, the value of all goods and services, shrank at an 0.3% annual rate in the first three months of the year, the Commerce Department said on April 30. That’s down from a 2.4% increase at the end of last year.
The first quarter covers the first three months of the year, the first three weeks of which were helmed by former President Joe Biden, whose last full day in office was Jan. 19. The report also covers a period of time under Trump when the economy and the stock market have experienced turbulence in reaction to his tariff policies.
Stocks dipped in reaction to the latest U.S. government economic news, prompting Trump in a Truth Social post to put the blame on Democrats: "This is Biden's Stock Market, not Trump's," the president wrote. "I didn't take over until January 20th."
Despite being on the job 101 days, Trump later in the day during a Cabinet meeting added that Biden – not him – should be held responsible for the economy's performance during not only the current but also the upcoming GDP quarter, which runs from the beginning of April through July.
"You could even say the next quarter is sort of Biden," Trump told reporters. “We're turning it around. It's a big ship to turn around, and we're going to have the greatest country financially in the history of the world.”
Trump's comments came as businesses imported a massive trove of goods before the Republican president's sweeping tariffs took effect, which widened the U.S. trade deficit and curtailed growth. Excluding the tariff effects, the underlying economy turned in a solid showing in the first quarter despite tumbling consumer confidence and rising business uncertainty over the import fees.
A day after Trump unveiled his sweeping tariffs on dozens of countries on April 2, including a universal 10% tariff and higher tariffs on goods from specific countries, U.S. stocks plummeted in their worst session since 2020. The stock market reacted to retaliation warnings from around the world the day after Trump's tariff program aimed at boosting U.S. manufacturing by pressuring companies to make their products in America.
U.S. consumer sentiment fell for the fourth month in a row in April as Americans question what tariffs and trade tensions will mean for their wallets, according to the University of Michigan Surveys of Consumers.
'Somebody else's fault'
Trump's political opponents faulted the president for trying to pin blame on Biden.
"Donald Trump thinks that every problem is somebody else's fault, not his," said Sen. Bernie Sanders, an independent who ran for president in 2016 and 2020 as a Democrat and represents Vermont. "I think he should take responsibility for the chaos that he has caused, a massive uncertainty in the American economy and in the global economy, the fact that his tariffs arbitrarily determined are going to raise prices for working families."
On Truth Social, Trump put a positive spin on his economic policies and promised voters who elected him last November that more time is needed to improve the U.S. situation.
“Our Country will boom, but we have to get rid of the Biden “Overhang,” Trump wrote. “This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!”
Florida GOP Sen. Rick Scott said Trump's push for Americans to be patient is a good message, and he believes the Republican president "is trying to take responsibility for improving the economy."
"I think none of us are very patient, right, as people," Scott said. "If we're looking for a job, you know it's important to get a job that day because you're trying to support your family."
The Commerce Department economic report came as senators prepared to vote April 30 on a resolution that would end the national emergency Trump declared in order to impose his tariffs without congressional authority.
"How can anybody look at it objectively and not be disappointed?" said Sen. Thom Tillis, R-N.C., of the report.
Tillis is one of the most vulnerable sitting GOP senators up for reelection in his swing state next year. He said the slowdown was caused by "several different factors."
Asked by Paste BN what he made of Trump blaming Biden for the change, Tillis was straightforward: "That will work now. It won't work six months from now," he said. "There is some argument to say that some of this is a lag from the prior administration. But once you get elected, you own the economy."
Stock market experiences worst first 100 days since Gerald Ford
The Commerce Department's report said that goods imports spiked at an annual rate of 50.9% the first three months of the year and the nation’s trade deficit widened by $14 billion to a record $162 billion in March as businesses ramped up shipments in anticipation of tariffs.
All told, the first quarter’s yawning trade gap subtracted about 5 percentage points from economic growth.
White House trade adviser Peter Navarro said the influx in imports was an anomaly caused by tit-for-tat tariffs that he expects to reverse in the next quarter and contribute to economic growth.
“What happened with the numbers today is we had a fairly extraordinary surge of imports that was totally driven by the rest of the world trying to get their products in here before the tariffs took full hold,” Navarro told reporters at the White House, referring to it as a "one-shot" deal.
Navarro said that the tax bill Republicans in Congress are working to pass would include a provision allowing for 100% expensing for equipment and buildings in the U.S. that he said would help stimulate domestic investment.
The U.S. stock market recorded its worst first 100 days of any presidential term since President Gerald Ford assumed office after President Nixon resigned in 1974, according to a Center for Financial Research and Analysis report.
Trump’s push to blame Biden for the stock market plunge under his watch is undercut by the stock performance of his predecessor. The S&P 500, which tracks the stock performance of 500 leading companies, grew by 14% annually during Biden’s four years in the White House, including by 23% in 2024 and 24% in 2023.
During Trump’s first 101 days of his second term, the S&P 500 is down about 8%.
“When Joe Biden handed Donald Trump the best-performing economy in the world, experts praised the U.S. for leaving every other wealthy nation ‘in the dust,’" former Biden deputy press secretary Andrew Bates said. “Now we’re plummeting toward a Trumpcession.”
Meanwhile, Trump tried to take credit for the booming stock market during Biden’s final year, arguing back then that investors were predicting a Trump 2024 election victory. “THIS IS THE TRUMP STOCK MARKET,” Trump wrote in a Jan. 29, 2024 Truth Social post, when Biden was the sitting president.
The administration has currently imposed a 90-day pause on new reciprocal tariffs, while raising rates on Chinese goods to as high as 245% when counting the tariffs imposed during Trump's first term and the Biden administration.
But tariffs on certain imports, including steel and aluminum, and a 10% universal tariff on most countries remains in place.
Referring to the negotiations between the administration and other countries over tariffs, Sen. Jerry Moran, R-Kan., showed Trump deference. "We ought to give the administration and particularly the USTR the chance to work out agreements with countries that are interested in changing their behavior in order to do business in the United States," he said.
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Contributing: Paul Davidson