A closely watched inflation gauge cooled last month in a sign that prices were steadily easing before most of President Donald Trump’s tariffs were implemented.

A closely watched inflation gauge cooled last month in a sign that prices were steadily easing before most of President Trump’s tariffs were implemented. At the same time, consumers accelerated their spending,

The U.S. economy shrank 0.3% from January through March, first drop in three years. It was slowed by a surge in imports as companies in the United States tried to bring in foreign goods before President Donald Trump imposed massive tariffs.

US President Donald Trump on Wednesday stated that tariffs imposed by his administration could lead to American children having “two dolls instead of thirty,” but China would suffer more from the trade war, reported Associated Press. Also Read: Donald Trump says tariff talks with India going great, expects a trade deal soon

The Commerce Department on Wednesday estimated that the U.S. economy shrank during the first three months of 2025, its worst performance in three years. The 0.3 percent contraction is a sharp decline from the 2.

President Donald Trump has notched the first 100 days of his second term, putting a spotlight on how inflation and other key issues have fared under his first few months in office.