US Economy Rebounds Amid Trade War Fluctuations

After a first-quarter slump influenced by President Donald Trump's trade wars, the US economy made a comeback this spring. According to an updated report from the Commerce Department, the nation's GDP grew at a 3.3% annual pace from April to June, recovering from a 0.5% decline in early 2025.

This economic recovery was primarily propelled by a sharp downturn in imports, falling at a rate of 29.8%, following earlier stockpiling before tariffs. Consumer spending, which makes up 70% of the GDP, modestly increased, contributing positively to the growth. Yet, private investment fell drastically at a 13.8% pace, the steepest since the 2020 pandemic.

Despite stronger underlying strength indicators, federal spending also decreased significantly. Trump's protectionist tariffs raise concerns among economists about potential inflation and raised costs. Additionally, the inconsistent imposition of tariffs has left businesses uncertain regarding investments and hiring in the current economic environment.

(With inputs from agencies.)