The U.S. economy unexpectedly grew at a robust 3% annual pace in Q2 2025, rebounding from a Q1 contraction linked to trade war disruptions. While a sharp drop in imports fueled the surge, lackluster consumer spending and a significant fall in private investment suggest a more nuanced recovery.

U.S. economic growth rebounded in the second quarter of 2025, largely due to the unwinding of a surge of imports triggered by President Trump’s tariffs. U.S. gross domestic product (GDP) expanded an annualized rate of 3 percent between April and June after falling 0.

The GDP grew at an annual rate of 3% in the second quarter after falling in the first, a swing economists attributed to President Donald Trump's wide-ranging trade war.