Trump tells business chiefs he needs ‘little bit of time’ as US economy shrinks

President Donald Trump has asked for more time on the US economy as it contracted for the first time in three years, stoking recession fears.

He said the figure was misleading because companies had stockpiled imports ahead of his imposition of tariffs.

Trump, however, said $8tn (£6tn) of inward investment had been promised, which he argued would restore American manufacturing prowess.

The US economy contracted at an annual rate of 0.3%, the US commerce department said, a sharp downturn after growth of 2.4% in the previous quarter. It comes as Trump marks 100 days in office, with opinion polls indicating public discontent over his economic stewardship.

Speaking on Wednesday afternoon at a White House event attended by business leaders, Trump blamed his Democratic predecessor, President Joe Biden, for the disappointing gross domestic product data.

“This is Biden’s economy because we took over on January 20th,” Trump said. “I think you have to give us a little bit of time to get moving.”

It comes in the aftermath of the Republican president’s import taxes, which have disrupted global trade and markets.

Trump’s finger pointing at Biden drew scorn from Democrats.

Congressman Hakeem Jeffries, minority leader of the US House of Representatives, said: “This is not Joe Biden’s economy, Donald, it is your economy.

“It is the Trump economy, it is a failed economy and the American people know it.”

At Wednesday’s White House event, Trump touted planned investments in technology, healthcare and infrastructure.

He introduced CEOs of major companies, including Hyundai’s Jose Munoz, Toyota’s Ted Ogawa, and Johnson & Johnson’s Joaquin Duato.

Trump also urged Congress to pass his tax bill, which includes trillions of dollars in tax and spending cuts, but faces opposition from Democrats and some Republicans.

At a television appearance earlier in the day with cabinet members, Trump played down fears of shortages of items such as toys, as trade between the US and China falls sharply.

“Well, maybe the children will have to have two dolls instead of 30 dolls, you know?” he said. “And maybe the two dolls will cost a couple of bucks more than they would normally.”

Trump has enacted 10% levies on imports to the US from nearly all countries, after announcing a 90-day pause on higher tariffs. The amount paid by these countries could change after the period expires in July.

Another 25% tariff has been imposed on Mexico and Canada. The levies on China, however, have led to an all-out trade war with the world’s second largest economy.

Trump imposed import taxes of up to 145% on Chinese goods coming into the US and China hit back with a 125% tax on American products.

His administration said when the new tariffs were added on to existing ones, the levies on some Chinese goods could reach 245%.

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