US economy shrank in first quarter due to Trump’s trade war – National & International News – WED 30Apr2025
US economy shrank in first quarter due to Trump’s trade war.
US, Ukraine sign minerals deal.
Pakistan claims India planning attack within 36 hours.
US economy shrank in first quarter due to Trump trade war
The Commerce Department released figures today that show that the US has had its worst first quarter since 2022. The figures show that US gross domestic product shrank by 0.3% in the first quarter of 2025. This is a sharp decline from the 2.4% growth in the fourth quarter of 2024. The figures are also worse than the 0.8% rate of growth previously projected by economists.
Economists had expected growth to slow compared to Q4 2024 due to Trump’s sweeping tariff program and the inconsistent and sometimes chaotic application. In part, the first quarter decline was driven by a huge trade deficit, resulting from American consumers and businesses rushing to buy foreign goods to get ahead of the tariffs. This was by far the biggest drag on first quarter growth. Other contributing factors included cutbacks in government spending driven by Trump’s policies.
Consumer sentiment has also dropped to its lowest level since the 1990 recession.
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US, Ukraine sign minerals deal
According to the Treasury Department, the US and Ukraine signed a deal this afternoon to share in the proceeds from a mineral and rare earth extraction deal. President Trump has touted the deal as a way to help repay the US for the roughly $180 billion in aid that the US has given to Ukraine since the start of its war with Russia.
The signing of the deal shows a rare thaw between Washington and Kiev in recent months. Tensions have been high during negotiations between the US, Ukraine, and Russia to reach a sustainable ceasefire deal.
Negotiations over this deal have been in the works for months, and there has been a great deal of controversy over the terms of the arrangement. The Ukrainians have previously leaked terms that the Trump administration was requesting, which some viewed as being overly exploitative. The terms of the deal that was signed today are not currently public.
Experts have warned that Ukraine’s mineral wealth may have been overestimated, or that existing deposits may not be profitably exploitable.
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Pakistan claims India planning attack within 36 hours
Last week, 26 tourists were killed by still-unidentified gunmen in the India-controlled region of Kashmir. Although the gunmen and their motives have not been identified, India blames Pakistani-backed militants.
Now, Pakistan claims to have “credible intelligence” indicating that India will take military action against Pakistan in the next 24-36 hours. The statement came after reports that Indian Prime Minister Narendra Modi had given the armed forces “complete operational freedom to decide on the mode, targets and timing of our response to the terror attack”. There have already been exchanges of gunfire over the line of control which separates the Indian and Pakistani controlled parts of Kashmir.
Previous military flare-ups between India and Pakistan in recent years have been severe but limited. However, tensions are already high between Modi’s Hindu nationalist government and their Muslim-majority neighbor Pakistan. Since last week’s attack, India ceased participation in a water-sharing packed with Pakistan (which is key to Pakistan’s agriculture), closed border crossings, expelled Pakistani diplomats and encouraged Pakistani Nationals to leave the country.
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