U.S. economy grew at a 3% rate in Q2, a better-than-expected pace even as Trump’s tariffs hit

Good news for those that follow the stats

What’s going to matter is each individual persons economic condition. If cost of living has gone up more than income I doubt a stat is going to convince them the economy is good. It’s not rocket science.

 

Color me SHOCKED that your thread hasn’t gotten more attention. This is major news and that is proven by the barren nature of this thread. President Trump does it again, ladies and gentlemen.

U.S. economy posts strong second quarter, growing at a 3 percent pace

https://www.washingtonpost.com/business/2025/07/30/gdp-q2-economy-tariffs/

Even NPR up in this…

The U.S. economy rebounds to 3% growth in second quarter — but tariffs skew picture (LOL)

The U.S. economy grew this spring after a slowdown earlier this year. A report from the Commerce Department shows the nation's GDP grew at an annual rate of 3% in the second quarter of the year.

https://www.npr.org/2025/07/30/nx-s1-5484219/economy-gdp-tariffs-growth

 

Q1 GDP growth was artificially low at -0.5% due to Trump's tariffs and Q2 GDP growth was artificially high at 3% due to Trump's tariffs. Average them out and we get around 1.25% growth for 2025 so far. Gangbusters.

 

Imports increased dramatically in Q1 to get ahead of Trump's tariffs. That increased inventories and suppressed GDP in Q1. Imports decreased dramatically in Q2. That depleted inventories and increased GDP in Q2. Average the 2 out and you get 1.25% growth.

 

Fools gold. The jump is from mandated RTO mandates, not actual productivity increases due to new business. Unless your investor in gas, auto repairs, or restaurants near offices, nothing has really changed other than increased prices due to tariffs.

Will be interesting to see when and how those numbers change once people burn out.

 

As is always the case regardless of who is in power, it seems 1/2 of the country is rooting for it's economic failure.

 

Because we have two economic crony systems tied to political parties.

Until $ and the power elite stop funding politics, not much will change. Everyone talks about a third party, all that would do is increase the discontent to 2/3 instead of half.

 

Bottom line with the tariffs and unpredictability I predicted worse for gdp and inflation. To date that doesn’t seem to be coming to pass.

 

One can tell which posters are the UF Warrington grads…

 

feels like they are rooting against good numbers

 

this isn't possible. its been reported many times that the sky is falling so eventually they'll get it right as those people root against america.

 

We'd actually have to have good numbers for this to be true. Trade and inventories have scewed the numbers the last 2 quarters. But growth in spending and investment, the actual important part of GDP, is well down from last year.

 

That's great news, but until we get the mains-street economy up and running (housing and construction) we only have a partial have an economy. Unfortunately the Fed will use this as an excuse to keep interest rates artificially high and Trump will let him continue to keep the housing/construction market depressed.

The good news is that at least two Fed Governors dissented with Powell's refusal to lower rates. Look for more feds to pressure Powell from within his own unaccountable cabal of policymakers. Independence of the Fed is "supposedly" good... until they start looking political agents with their actions. End the Fed. It's more than a slogan that needs more investigation/consideration.

16% of the economy is in a depression and all of those jobs and ancillary jobs are all middle class main-street jobs that are gone and waiting to be resurrected with fair and sound Fed rate policies.

 

Right on queue

 

Do you understand it? On the the graph, you see the 2 long gray bars for the last 2 quarters? You notice how they're way longer than any other quarter for the last few years? That's the trade effect of the tariffs. It skewed GDP growth down in Q1 and up in Q2.

 

As was already stated, in the second quarter American businesses purchased far fewer imports, which ends up counting against the gross domestic product, because they had already stocked up on foreign goods earlier in the year. It isn’t that hard to understand.