The U.S. Senate has rejected a recent attempt to dismantle a series of tariffs imposed by former President Donald Trump, just hours after the federal government reported that the economy shrank for the first time in three years.
On April 2nd, Trump declared a “Day of Liberation for American Industry,” announcing a 10% tariff on all imports and additional tariffs on products from countries with significant trade surpluses with the U.S., including China, Mexico, and Canada. These measures have sparked strong reactions from trade partners, resulting in retaliatory tariffs and further destabilizing global markets.
In the first quarter of 2025, the U.S. economy experienced a 0.3% contraction in GDP, marking the first decline in three years. Analysts attribute this downturn to increased imports ahead of the tariffs’ implementation and a reduction in government spending, exacerbating the trade deficit and raising fears of a potential recession.
Despite the economic challenges, Trump’s administration continues to defend the tariff policy as a strategy to protect American industry and jobs, while critics warn of adverse consequences for consumers and global trade.
