- Trump blamed Biden for the shrinking economy and urged Americans to be patient for a coming “boom.”
- The U.S. economy contracted 0.3% in Q1, with weak hiring and rising inflation adding pressure.
- Critics say Trump is dodging responsibility after once taking credit for market gains under Biden.
After fresh data showed the U.S. economy shrank last quarter, President Donald Trump didn’t hesitate to point fingers — mostly at his predecessor. In a post on Truth Social Wednesday morning, Trump claimed the downturn wasn’t on him, insisting it was still “Biden’s Stock Market,” and that he didn’t take the reins until January 20.
“Tariffs will soon start kicking in, and companies are moving into the USA in record numbers,” he wrote. “Our Country will boom, but we have to get rid of the Biden ‘Overhang.’”
And while he admitted the boom might “take a while,” Trump was adamant that it’s not about tariffs — “only that he [Biden] left us with bad numbers.”
GDP Drops, Hiring Stalls, and Markets React
The comments came shortly after the Commerce Department reported that GDP declined by 0.3% in Q1 — the first negative growth since early 2022. Stocks tumbled at the open, as did confidence on Wall Street, driven partly by disappointing earnings and the sour economic data.
Another hit came from the ADP private payrolls report, which showed only 62,000 jobs added in April — far below expectations. That marks the weakest hiring since July 2024, and a sharp drop from March’s revised figure of 147,000.
Interestingly, the Commerce Department noted the GDP drop had more to do with a surge in pre-tariff imports and cuts in government spending (especially defense), not Biden-era policies as Trump claimed.
A Mixed Message and Mounting Pressure
Trump’s social media defense comes as he tries to tout the first 100 days of his second term as a success. Just the night before, he declared, “Prices are coming way down. That’s what I’ve done.” But the data? It tells a different story.
According to the report, the personal consumption expenditures (PCE) price index — the Fed’s go-to inflation gauge — actually jumped 3.6% last quarter, up sharply from 2.4% in Q4 of 2024.
Now, some analysts say Trump’s trade moves are spooking companies and consumers alike. Shrinking payroll growth and dropping consumer confidence are being tied to uncertainty around his aggressive new tariff policies.
Trump vs. Trump (Again)
Critics were quick to point out the contradiction in Trump’s messaging. Back in January 2024, before taking office again, he said the surging market was already his doing — bragging that investors were betting on his return. “THIS IS THE TRUMP STOCK MARKET,” he posted then, crediting strong poll numbers for driving investor optimism.
Fast-forward a few months, and now that things are looking shakier, he’s shifting the blame. Andrew Bates, a former Biden spokesperson, fired back: “Joe Biden handed Donald Trump the best-performing economy in the world… now we’re plummeting toward a Trumpcession.”
