The U.S. economy shrank 0.3% from January through March, its 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.

The January-March expansion of U.S. gross domestic product was the slowest in almost three years and was down from 2.4% in the last three months of 2024.

Imports shaved 5 percentage points off first-quarter growth. Consumer spending also slowed sharply.