Trump Acknowledges Tariffs May Hurt Amid Shrinking Econom

U.S. President Donald Trump acknowledged Wednesday that Americans may experience limited product availability and possible price increases as the trade war with China continues.

Speaking to reporters, Trump used a hypothetical example, saying children might end up with only two dolls instead of thirty, and that those dolls could cost slightly more.

His comments followed the release of a report from the U.S. Department of Commerce showing the economy contracted by 0.3% in the first quarter of 2025—a sharp reversal from the 2.4% growth recorded in the final quarter of 2024. Trump was in office for most of the quarter.

The report also noted a significant spike in imports and a decline in consumer spending, which some analysts interpret as a rush by businesses to import Chinese goods before the tariffs fully take effect.

Markets reacted negatively to the news, with major stock indices falling between 1.5% and 2%.

Trump was quick to shift blame onto former President Joe Biden, writing on Truth Social: “This is Biden’s Stock Market, not Trump’s.” He also insisted that tariffs would soon begin "kicking in" and claimed companies were moving operations to the U.S. in record numbers. Trump dismissed any connection between the tariffs and the latest economic data.

One notable consequence of the trade dispute was Amazon's recent move to display a tariff surcharge on products imported from China. The White House criticized the move as “hostile and political,” prompting Amazon to walk back the decision.

While Trump has repeatedly claimed that trade negotiations with China are ongoing and that new trade deals are being signed at a record pace, his administration has yet to specify which countries are involved. In the case of China, officials in Beijing have outright contradicted Trump’s statements, denying that negotiations are currently underway.