The US economy expanded at an annualized rate of 3% in the second quarter, marking a strong rebound following a contraction in the first quarter. This growth outpaced economists’ forecasts, which had predicted a 2.6% increase, according to a Bloomberg poll.
The robust performance comes after a 0.5% decline in GDP during the first quarter, a period marked by a surge in imports as companies stockpiled goods ahead of President Donald Trump’s tariff deadline on April 1, dubbed “liberation day.” The latest figures reflect the significant impact of the administration’s trade policies, which have caused notable fluctuations in imports and exports over recent months.
Following the imposition of tariffs on April 5, imports dropped sharply in the second quarter as demand for foreign-made products declined. This shift contributed to the positive GDP growth, as net exports played a major role in the overall economic rebound.
The release of the GDP data arrives just hours before the US Federal Reserve’s policy-setting committee convenes. Despite pressure from the White House to implement a substantial interest rate cut, the central bank is widely expected to keep rates steady.
Meanwhile, US stock markets remain near record highs, with futures for the blue-chip S&P 500 index indicating a modest 0.1% gain ahead of the GDP announcement. The index has reached intraday records in each of the last five trading sessions, rebounding strongly after the initial market turmoil triggered by the tariff announcement in early April.
