President Donald Trump blamed former President Joe Biden after new data showed U.S. gross domestic product contracting in the first quarter of 2025. He suggested he will blame Biden for the second quarter, too. His claim that the negative GDP and subsequent market declines were a result of Biden's policies is inaccurate. U.S. President Donald Trump speaks during a Cabinet meeting at the White House on April 30, 2025 in Washington, DC. According to the Commerce report, the GDP figure reflects a wave of imports that companies made to try to get ahead of Trump's promised tariffs. Also weighing on GDP was a drop in government spending, driven largely by a cut in defense. A separate report from ADP earlier Wednesday showed that private payrolls rose by just 62,000 in April, far below the Dow Jones consensus estimate for an increase of 120,000. The weak hiring report was the smallest gain since July 2024. It also showed a stark drop in payroll growth from the downwardly revised gain of 147,000 in March. Markets fell sharply at the open after the GDP report and disappointing corporate results. Stocks clawed back some of those losses later in the trading day. The bad economic data could hang over Trump's meeting with more than two dozen business leaders at the White House later Wednesday. And his blame-casting on Biden could trip up his recent efforts to take credit for what he asserts are a slew of positive economic developments. In a speech Tuesday evening celebrating the 100th day of his second presidential term, Trump boasted that "prices are coming way down," claiming, "that's what I've done." But the latest GDP report showed the personal consumption expenditures price index, which is the Federal Reserve's preferred inflation measure, sharply increasing by 3.6% in Q1, up from the 2.4% rise in the prior quarter. Meanwhile, experts have pegged the shrinking payroll numbers and cratering consumer confidence to uncertainty and fear surrounding Trump's tariff policies. Trump's current attempt to shirk responsibility for the economy is a mirror image of his effort to take credit for the stock market when it was on the rise during the Biden administration. On Jan. 29, 2024, the then-presidential candidate wrote on Truth Social, "THIS IS THE TRUMP STOCK MARKET BECAUSE MY POLLS AGAINST BIDEN ARE SO GOOD THAT INVESTORS ARE PROJECTING THAT I WILL WIN." Andrew Bates, a former White House spokesman under Biden, tore into Trump over his latest claim. "When Joe Biden handed Donald Trump the best-performing economy in the world, experts praised the U.S. for leaving every other wealthy nation 'in the dust,'" Bates said in a statement. "Now we're plummeting toward a Trumpcession," he said.

Trump says he'll blame Biden again for 2nd quarter GDP after blaming him for Q1 drop

U.S. President Donald Trump accused former President Joe Biden of causing economic downturns in the first and second quarters of 2025, citing declining GDP and weak payroll data. The Commerce Department reported a contraction in Q1 GDP, attributed to import surges and reduced defense spending. ADP data showed minimal payroll growth in April, exacerbating market volatility. Trump's claims were criticized as inaccurate, with experts linking economic challenges to his tariff policies and uncertainty. His blame on Biden contrasts with his earlier praise for economic performance during the Biden administration.