ToplineAs recession fears reverberate from Washington to Wall Street, Wednesday brought the most comprehensive yardstick yet of the health of the U.S. economy yet as the government released the first estimate of the country’s gross domestic product over the first three months of 2025.

GDP shrank in the first quarter, a new report shows, offering a look at how tariffs are reshaping spending patterns and changing the economy.

U.S. economy shrank 0.3% in Q1 2025, reversing the 2.4% growth seen in Q4 2024. Rising imports and falling government spending drove the GDP declin

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, senior editor Joe Sobczyk looks at today’s GDP report and the reaction in the White House. Sign up here and follow us at @bpolitics.

President Trump dismissed the government data showing the Gross Domestic Product contracted in the first quarter of 2025, its worst performance in three years. CBS News’ Erica Brown reports.