The economy of the United States expanded more than expected as President Donald Trump’s tariffs realized the last months, they showed federal government data on Wednesday.
The Gross Domestic Product of the United States, or GDP, increased at an annualized rate of 3% for three months that ended in June. The figure marked an acute acceleration of an annualized contraction of -0.5% in the first three months of 2025.
Reading amounted to strong economic growth, suggesting that the economy has continued to avoid significant cooling induced by the rate. An impulse in consumer spending helped boost the economic increase, said the United States Department of Commerce.
To some extent, however, Trump’s taxes have erased the findings of GDP.
The government’s GDP formula subtracts imports in an effort to exclude foreign production from the calculation of total goods and services. Changes in reading in this account does not reveal either underlying or strength economic weakness.
The GDP measure fell during the first three months of the year, largely due to an increase in imports as companies stored the inventory to avoid long -range rates. On the contrary, a drop in imports during the second quarter may have inflated the GDP figure of the second quarter.
GDP growth “mainly reflected a decrease in imports, which are a subtraction in GDP calculation,” the United States Department of Commerce said Wednesday.
The US economy has so far challenged the fears of a rate induced recession.
The unemployment rate is close to a historically low level and the growth of employment remains robust, although it has slowed from the previous maximums. Inflation has risen in the last two months, but it is still under where it was stopped when Trump assumed the position.
In the months after Trump’s “Day of Liberation Day” tariffs, in April, the feeling of the consumer decreased to its lowest level in years, which increases concern for a possible setback in consumer spending, which represents approximately two thirds of economic activity.
Trade representative Jamieson Greer speaks with the Secretary of the Treasury, Scott Besent, during a press conference after commercial conversations between the United States and China concluded, in Stockholm, Sweden, on July 29, 2025.
Magnus Disthall/TT news agency through Reuters
However, the feeling of the consumer has increased for two consecutive months, since Trump has receded some of his most pronounced rates. Consumer spending has proven quite resistant.
The new GDP data on Wednesday arrived hours before the Federal Reserve will announce its last decision about interest rates.
An overwhelming 97% of investors believe that interest rates will be stable, according to the CME Fedwatch toolA measure of the feeling of the market.
In theory, resistant economic growth relieves pressure on fed to lower interest rates, since consumers and companies seem to be flushed through high loan costs. If growth begins to decrease, Fed could try to reduce interest rates as a means to boost economic performance.
The Fed has adopted an approach to wait and see as it continues to observe the effects of Trump’s tariffs.
“Despite the high uncertainty, the economy is in a solid position,” said Fed president Jerome Powell, at a press conference in Washington, DC, last month.
