April 30 (UPI) -- U.S. economic gross domestic product declined for the first three months of 2025 as imports surged amid Trump administration tariffs, but White House trade adviser Peter Navarro brushed off any concern.
The Bureau of Economic Analysis said in a statement that real GDP fell at an annual rate of 0.3% in the first quarter.
"I got to say just one thing about today's news, that's the best negative print I have ever seen in my life," Navarro said Wednesday, adding that the markets "need to look beneath the surface of that."
The GDP drop, according to the BEA, "primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending."
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Meanwhile, the Dow dropped 400 points Wednesday morning on the shrinking economy news.
"So, we really like where we're at now," Navarro, an ardent Trump supporter, told CNBC.
Dow Jones surveyed economists had expected GDP growth of 0.4%, and real GDP increased 2.4% in the fourth quarter of 2024.
The BEA said imports were up 41.3% in the first quarter driven by a goods increase of 50.9%.
"We had a 22 percent increase in domestic investment. That is off the charts," says Navarro, adding how its "when you strip our inventories and the negative effects of the surge in imports because of the tariffs you have three percent growth."
Increases in investment, consumer spending and exports partially offset the higher imports, according to the BEA.
"Maybe some of this negativity is due to a rush to bring in imports before the tariffs go up, but there is simply no way for policy advisors to sugar-coat this. Growth has simply vanished," FWDbonds chief economist Chris Rupkey said.
Consumer spending measured by the personal consumption expenditures index, was up 1.8% compared with a 4% increase in the fourth quarter of 2024.
The drop in GDP fed more recession fears, even as both the jobs market and consumer spending remain resilient for now.
Meanwhile, President Donald Trump blamed his predecessor, former President Joe Biden, for the poor GDP showing in a post on his social media platform Truth Social.
"This is Biden's stock market, not Trump's. I didn't take over until Jan. 20. Tariffs will start kicking in and companies are starting to move into the USA in record numbers," Trump said. "Our country will boom, but we have to get rid of the Biden "overhang." This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!"
However, this is not the first time Navarro -- who served a four-month prison sentence for contempt of Congress stemming from Trump's first term -- has dismissed ongoing concerns over the damaging effect of Trump's economic policies.
Weeks ago, Navarro characterized the historic April 10 stock market drop as "no big deal" while fears swirl over Trump's tariffs.
