President Donald Trump remains optimistic about his economic policies, asserting they will lead to a booming U.S. economy despite recent data indicating a contraction in the first quarter of 2025.

Recently, new tariffs of 25% on certain auto parts were implemented, which could increase vehicle prices by an average of $4,000.

Trump has also criticized Federal Reserve Chair Jerome Powell for not acting swiftly enough on interest rates, although he has no plans to fire him.

In fact, imports surged by 41% in the first quarter, the highest increase since 1972, as companies rushed to stock up before tariffs took effect.

Democratic leaders have directly blamed Trump for the economic downturn, with Hakeem Jeffries stating, 'This is your economy - a failed economy.'

In an interview on May 3, Trump dismissed recession fears, labeling the current economic climate as a 'transition period'.

However, his administration's trade policies, particularly the imposition of significant tariffs, have contributed to economic challenges, as businesses hoarded goods and consumer spending slowed.

These tariffs have already led to General Motors lowering its profit forecast and a notable drop in revenue for fast-food chain McDonald's, particularly in the U.S.

Public approval for Trump's economic policies has plummeted to 36%, the lowest of his presidency, with consumer confidence hitting a 13-year low.

These economic concerns come amid broader discussions about federal funding cuts affecting various sectors, including healthcare and immigration.

Legal challenges against the tariffs are escalating, with multiple lawsuits claiming Trump has exceeded his authority, complicating enforcement efforts.

Despite these challenges, U.S. stocks experienced a rebound at the end of the week, buoyed by better-than-expected employment figures and indications that China might be open to trade talks.