Anna Hartz
U.S. Economy Stumbles While China Grows
Donald Trump started the week hoping for wins. Instead, he got bad economic news.
The U.S. economy shrank by 0.3% in the first quarter of 2025, reports Ziare. This is the first time in three years that the economy has contracted.
At the same time, China’s economy grew by 5.4%, faster than expected. It was not the headline the Trump team wanted.
Trump launched a trade war to weaken China and boost American growth. But things turned out differently.
The U.S. economy slowed, and China gained strength. Some experts say Trump’s plan may have helped China more than it hurt it.
The U.S. put heavy tariffs on many goods. Companies rushed to import products before the new taxes kicked in.
This led to a short-term rise in imports, which hurt growth. One economist said it clearly. Trump wanted to look strong. The numbers showed weakness.
China used the moment to push more exports to the U.S. In March, shipments to the American market rose by over 12%. This helped fuel China’s strong performance.
Trump still says the tariffs will push China to make a better deal. But China is taking a different path.
Chinese leaders are strengthening ties with Europe, Southeast Asia, and other regions. They want to rely less on the U.S. for trade.
At the same time, Mexico and Canada are doing the same. They are building more trade deals outside the U.S. This raises concerns that America could become isolated.
The economic pain is also becoming a political issue. Trump’s approval rating is falling.
Experts warn that prices, unemployment, and inflation could get worse before the 2026 elections.
Trump blames others. He says this is “Biden’s stock market.” His advisers say things will improve soon.
But critics are not convinced. One Democrat said Trump turned a strong economy into a weak one in just 100 days.
Even Trump’s team seems to be backing off tough talk on China. But it may be too late. Voters will decide how much more of this strategy they can take.