US Economy Rebounds in Second Quarter: Report

After a rocky start to 2025, the U.S. economy rebounded strongly in the second quarter, according to updated data released by the Commerce Department on Thursday.

The improved report follows a turbulent first quarter that saw economic output contract for the first time in three years amid ongoing trade tensions, according to The Associated Press.

Gross domestic product (GDP), the broadest measure of economic activity, expanded at a 3.3% annual rate from April through June — up from the government’s initial 3% estimate in July.

That bounce-back follows a 0.5% decline in the first quarter, driven largely by an import surge as businesses rushed to stock up ahead of newly announced tariffs under President Donald Trump.

The Commerce Department noted that imports fell sharply in the second quarter, dropping at a 29.8% pace, which added more than five percentage points to GDP growth for the quarter.

The president’s aggressive tariff strategy has become a defining feature of his second term, disrupting global supply chains and prompting heated debate over its impact on the U.S. economy.

Since returning to the White House, Trump has moved to reshape American trade policy with sweeping tariffs on goods from nearly every major trading partner. Specific products such as steel, aluminum, and autos have been hit particularly hard.

Trump defends his approach as necessary to protect American jobs and industries.

He has argued that the tariffs not only incentivize companies to move factories back to the United States but also help fund the substantial tax cuts he signed into law on July 4. However, many mainstream economists warn the trade war is creating headwinds for the economy.