The U.S. Commerce Department announced that the country’s GDP expanded at an annual rate of 3.3% between April and June, following a 0.5% contraction in the first three months of 2025. The department had initially estimated a 3% growth for the second quarter.
The decline in GDP in the first quarter, marking the first downturn of the U.S. economy in three years, was primarily driven by an increase in imports—subtracted from GDP—as companies hastened their purchase of foreign goods ahead of Trump’s tariffs.
This trend reversed in the second quarter: imports fell at a rate of 29.8%, boosting growth from April to June by more than 5 percentage points.
