The U.S. economy shrank at a 0.3% annual pace from January through March, the first drop in three years, as President Donald Trump's trade wars disrupted business. First-quarter growth was slowed by a surge in imports as companies in the United States tried to bring in foreign goods before Trump imposed massive tariffs.

The president’s turnover of the economic order has unleashed changes that could prove lasting, because other countries will adjust.

President Donald Trump blamed his predecessor and defended his sweeping tariffs after new data showed the U.S. economy contracting last quarter.