US GDP Contracts 0.3%: Impact of Trump Tariffs and Short-Term Distortions

According to the latest report from the US Department of Commerce, the real Gross Domestic Product (GDP) of the United States shrank by 0.3% in the first quarter of this year, marking the first instance of negative growth since 2022.
Financial expert You Ting-Hao analyzed on the program 'Morning Financial News Analysis' that the GDP decline is attributed to Trump's 90-day delay on reciprocal tariffs, which encouraged importers to stockpile goods. This surge in imports resulted in short-term distortions in the GDP figures. He forecasts that as these pressures ease, US GDP may recover in the third and fourth quarters, maintaining positive growth for the year.
You notes that the unexpected contraction in GDP is largely due to changes in purchasing habits prompted by the tariff wars, but as a consumer-driven economy, the surge in imports will not severely harm the US economy. If tariff negotiations proceed successfully, the second quarter's GDP could rebound.
Additionally, he emphasizes that government investment did not play a key role in this GDP report, indicating that the US economy can grow through private consumption. If the tariff situation stabilizes and the Federal Reserve potentially lowers interest rates, the US economy is expected to continue moving towards a healthy recovery.