US GDP Rebounds in Second Quarter Without ‘Tarifflation’

Liberty Nation ^ | Jul 30, 2025 | Andrew Moran

[E. Pluribus Unum]

US GDP Rebounds in Second Quarter Without ‘Tarifflation’ Federal spending falls while shoppers reopen wallets.

Federal spending falls while shoppers reopen wallets.

It was a rough start to 2025 as President Donald Trump’s tariffs created a doom-and-gloom situation in the US economy. However, the turbulence subsided and economic conditions rebounded sharply in the second quarter as US GDP topped economists’ expectations without triggering a bout of “tarifflation.” All eyes are now squarely focused on the third quarter.

Springtime for US GDP

Extra! Extra! The United States is no longer halfway toward a recession.

The Bureau of Economic Analysis released the advanced estimate of the second-quarter gross domestic product, a sum of the value of all goods and services produced in the nation. While economic observers had anticipated a solid reading and an improvement from the first quarter of 2025, the report topped expectations.

During the April-June period, the US GDP growth rate increased to 3%, surpassing the 0.5% contraction recorded in the first quarter of the year. The consensus estimate pointed to a 2.4% expansion. The key contributors to last quarter’s better-than-expected results were trade and consumer spending.

First, imports, which are subtracted from GDP calculations, declined by more than 30% after soaring 38% in the first quarter as businesses rushed to purchase their foreign goods. Exports fell 1.8% following a tepid 0.4% increase. Second, real consumer spending surged 1.4%, up from 0.5%. Are shoppers confident about the economy again? While consumer surveys suggest sentiment is complicated, recent figures show that individuals reopened their wallets.

Overall government consumption expenditures and gross investment ticked up 0.4%. However, a noticeable spending gap existed between the three levels of government. Federal outlays decreased by nearly 4%, while state and local spending surged by 3%. This was the second consecutive quarter of contracting federal expenditures.

A concerning...

[j.havenfarm]

Honestly, when I’m king, copywriters who come up with the cutesy words like “tarifflation,” are going to get what’s coming to them. first offense, public flogging. Second offense public’s hanging, the body to be left on the gibbet as a warning to others

[Ronaldus Magnus III]

Once again, the “experts” are wrong.

Probably the same “experts” just put on different hats.

Tariffs
Globull Warming
Oil
Dandruff

Whatever the hat they put on, the prognostication is always the same:

We’re all gonna die!!!

[Old West Conservative]

Olde scol punishment!

[Old West Conservative]

Olde scol punishment!

[Old West Conservative]

Unexpectedly!

The economists are getting it wrong because high and widespread tariffs imposed by the USA are unknown in the modern economy

The “experts” lack the models to determine precisely how the economy will function in a relatively high tariff environment.

We used to have wide-ranging tariffs and no income taxes for ... most? ... much? Of our history.

Check it out. We’re still here.

[Political Junkie Too]

Next quarter it will be TarriflationGate.

-PJ

[Jacquerie]

Many Freepers disappointed.

[Harmless Teddy Bear]

Honestly, when I’m king, copywriters who come up with the cutesy words like “tarifflation,” are going to get what’s coming to them. first offense, public flogging. Second offense public’s hanging, the body to be left on the gibbet as a warning to others

I like you.

I have no taste.

But I like you.

[j.havenfarm]

Thanks? I guess?
(PS I like you, too)