Trump Speaks on Economy During Cabinet Meeting

U.S. President Donald Trump addresses his Cabinet at the White House on April 30, 2025, in Washington, DC. Andrew Harnik | Getty Images

President Donald Trump, on Wednesday, attributed the current economic situation to his predecessor while defending his extensive tariffs. This comes after recent data indicated a contraction in the U.S. economy last quarter. Trump cautioned that his anticipated economic “boom” would “take a while.”

“This is [former President Joe] Biden’s Stock Market, not Trump’s. I didn’t take over until January 20th,” Trump stated in a post on Truth Social.

“Tariffs will soon start kicking in, and companies are moving to the USA in record numbers. Our country will boom, but we must eliminate the Biden ‘Overhang,'” he asserted.

“This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers. However, when the boom begins, it will be like no other. BE PATIENT!!!”

This defense came shortly after a U.S. Department of Commerce report revealed that gross domestic product fell at an annualized rate of 0.3% in the first quarter of the year, marking the first quarter of negative growth since Q1 of 2022. Trump’s assertion that this downturn stems from Biden’s policies is misleading.

According to the Commerce Department, the GDP figures reflect a surge in imports as companies prepared for Trump’s anticipated tariffs. Additionally, a decline in government spending, mainly due to cuts in defense, also impacted GDP.

Another report released earlier showed that private payrolls increased by only 62,000 in April, significantly lower than the Dow Jones estimate of 120,000. This marked the smallest gain since July 2024, and payroll growth was revised downward from March’s 147,000 gain.

Markets experienced a sharp decline following the GDP report and disappointing corporate results, and this negative data could overshadow Trump’s meeting with over two dozen business leaders at the White House later that day. His tendency to assign blame in light of these reports may complicate his ongoing efforts to highlight what he claims are positive economic developments.

For instance, during a speech on Tuesday evening marking the 100th day of his second presidential term, Trump claimed, “prices are coming way down,” asserting, “that’s what I’ve done.” However, the latest GDP report indicated a sharp increase of 3.6% in the personal consumption expenditures price index, the Fed’s preferred inflation measure, up from a 2.4% rise in the previous quarter.

Experts suggest that the declining payroll numbers and falling consumer confidence are tied to uncertainties surrounding Trump’s tariff policies. His current attempts to deflect responsibility for economic issues echo his earlier claims to have credit for stock market gains during the Biden administration.

On January 29, 2024, while campaigning, Trump wrote on Truth Social, “THIS IS THE TRUMP STOCK MARKET BECAUSE MY POLLS AGAINST BIDEN ARE SO GOOD THAT INVESTORS ARE PROJECTING THAT I WILL WIN.”

Andrew Bates, a former White House spokesperson under Biden, sharply criticized Trump over his comments, stating, “When Joe Biden handed Donald Trump the best-performing economy in the world, experts praised the U.S. for leaving every other wealthy nation ‘in the dust.’ Now we’re plummeting toward a Trumpcession.”

— Reporting by CNBC’s Jeff Cox and Sean Conlon.