BBC News, Los Angeles
President Donald Trump has asked for more time as the US economy contracted for the first time in three years, triggering fears of a recession.
He claimed that the figure was misleading due to companies stockpiling imports before his tariffs were imposed.
Trump, however, stated that $8tn of inward investment had been promised, which he argued would boost American manufacturing capabilities.
According to the US Commerce Department, the US economy contracted by an annual rate of 0.3%, a sharp decline from the 2.4% growth in the previous quarter. This comes as Trump marks 100 days in office, with opinion polls indicating public dissatisfaction with his economic leadership.
Trump addressed the White House event attended by business leaders, blaming his Democratic predecessor, President Joe Biden, for disappointing gross domestic product data.
“This is Biden’s economy since we took over on January 20th,” Trump stated. “I think we need to give ourselves a little bit of time to progress.”
Following the implementation of Republican President’s import taxes, which disrupted global trade and markets, Secretary Jeffries from the US House of Representatives responded, “This is not Joe Biden’s economy, Donald. It is the Trump economy, and it is a failing economy.”
During the White House event, Trump promoted investments in technology, healthcare, and infrastructure and introduced CEOs of major companies such as Hyundai’s Jose Munoz, Toyota’s Ted Ogawa, and Johnson & Johnson’s Joaquin Duato.
He also urged Congress to pass his tax bill, but faces opposition from Democrats and some Republicans.
In a TV appearance with cabinet members earlier in the day, Trump downplayed concerns about shortages of goods such as toys, even as trade between the US and China sharply decreases.
“Maybe the children will have to have two dolls instead of 30 dolls, you know?” Trump said. “And maybe the two dolls will cost a couple of bucks more than they would normally.”
Trump imposed 10% levies on almost all countries importing to the US, after announcing a 90-day pause on higher tariffs. After the period expires in July, the amount paid by these countries may change.
An additional 25% tariff has been imposed on Mexico and Canada. However, the tariffs on China have led to an all-out trade war with the world’s second-largest economy.
His administration stated that when new tariffs are added to existing ones, the tariffs on some Chinese goods could increase to 245%.
