Trump Blames Biden for 0.3% GDP Decline, Market Drop

Donald Trump has once again attributed the economic downturn to his predecessor, Joe Biden. Following the release of economic data indicating a contraction in the U.S. economy during the first quarter of 2025, Trump asserted that the negative GDP growth and subsequent market decline are consequences of Biden's policies.

During a cabinet meeting at the White House, Trump stated, "This is Biden's problem." He further suggested that the second quarter's economic performance would also be attributable to Biden, emphasizing that economic issues do not resolve overnight. Trump highlighted that he only took office in late January, implying that the economic conditions he inherited were dire.

Trump's remarks came after the Commerce Department reported a 0.3% annualized decrease in GDP for the first quarter of 2025, the first negative growth since Biden's tenure. Trump took to his social media platform, "Truth Social," to reiterate his stance, claiming, "This is Biden's stock market, not Trump's. I only took over on January 20th." He also mentioned that tariffs would soon take effect, leading to record levels of companies relocating to the U.S., and that the nation would prosper once the "legacy issues" left by Biden are addressed.

However, the Commerce Department's report indicates that the GDP decline was influenced by businesses stockpiling imports in anticipation of Trump's tariffs and a reduction in government spending, primarily due to defense cuts. Additionally, the personal consumption expenditures price index, a key inflation indicator, rose by 3.6% in the first quarter, surpassing the previous quarter's 2.4% increase.

Trump's attempt to shift economic responsibility mirrors his actions during Biden's presidency when he claimed credit for the stock market's performance. In January 2024, Trump wrote on "Truth Social," "This is Trump's stock market because I am leading in the polls against Biden, and investors expect me to win."

The economic downturn and Trump's blame game have raised concerns about the future of the U.S. economy. The poor economic data and weak employment report, which showed private-sector job growth of only 62,000 in April, have cast a shadow over Trump's efforts to highlight positive economic developments. The market's initial decline following the GDP report and disappointing corporate earnings further underscores the economic challenges ahead.

Trump's recent statements have also drawn criticism from Biden's former White House press secretary, Andrew Bates, who accused Trump of attempting to shift blame for the economic downturn. Bates argued that Biden handed over a robust economy to Trump, which is now heading towards a "Trump recession."