Former President Donald Trump has recently claimed that the U.S. economy’s struggles are a result of President Joe Biden’s policies, calling it “Biden’s economy.” However, businesses and economists argue that the economic difficulties stem from policies enacted during Trump’s own presidency, particularly his aggressive trade tariffs and economic strategies.

The Economic Strain

In the first quarter of 2025, the U.S. economy contracted by 0.3%, marking the first economic decline in three years. Economists attribute much of this downturn to Trump’s trade war with China, which imposed tariffs as high as 145% on Chinese goods. This led to an initial surge in imports as businesses sought to bypass the tariffs, distorting economic data and contributing to the contraction.

Trump’s view is that these tariffs are ultimately beneficial for American manufacturing, even if they cause short-term price increases for consumers. He has downplayed the impact on rising consumer costs, even suggesting that higher prices might mean children get fewer toys but are still better off in the long run. However, critics argue that these policies have led to inflation and higher costs for basic goods, straining both consumers and businesses.

Manufacturing and Construction Struggles

Sectors like manufacturing and construction have also shown signs of decline. The manufacturing index has fallen into negative territory, and construction activity has slowed. These sectors, once seen as reliable economic drivers, are now facing difficulties largely due to the consequences of trade policies and the lingering effects of disrupted global supply chains.

Public Perception of Trump’s Economic Management

Public opinion is increasingly critical of Trump’s economic management. A recent Reuters/Ipsos poll showed that only 37% of Americans approve of his handling of the economy, reflecting a significant drop in confidence. With concerns about a potential recession growing, many blame the unpredictability of Trump’s trade and tax policies for the current uncertainty (Reuters).

The Biden Effect

In contrast, the economy under President Biden showed significant growth after the initial pandemic downturn, with GDP increasing by 12.6% between 2021 and 2023 and unemployment hitting record lows. Economists like Mark Zandi and Paul Krugman have praised Biden’s economic approach as “Goldilocks” marked by balanced growth and low inflation.

Conclusion

While Trump blames Biden for the current economic difficulties, the evidence suggests that his own policies, particularly his trade tariffs, have played a significant role in the country’s economic challenges. The current situation underscores the need for a more measured, stable approach to economic policy moving forward.

For more information on the state of the U.S. economy, visit the U.S. Bureau of Economic Analysis or check the latest data from the Federal Reserve.