Today in one sentence: The U.S. economy shrank 0.3% in the first quarter of 2025 as Trump’s tariffs triggered a surge in imports and dragged down growth; Trump blamed Biden for the U.S. economy’s first quarterly contraction in three years, saying: “This is Biden. That’s not Trump”; Trump suggested that American kids may have to live with “two dolls instead of 30” as his tariffs on China drive up prices and limit imports; Trump told the U.S. Court of International Trade that judges have no authority to question his use of emergency powers to impose tariffs; a federal judge ordered the release of Columbia student Mohsen Mahdawi, who was detained by ICE during his citizenship interview; and Trump said he “could” bring Kilmar Abrego Garcia back from El Salvador but won’t.

1/ The U.S. economy shrank 0.3% in the first quarter of 2025 as Trump’s tariffs triggered a surge in imports and dragged down growth. The Commerce Department said the decline was “primarily” driven by a 41% jump in imports, as businesses rushed to stockpile goods ahead of the new tariffs. That trade imbalance subtracted nearly five percentage points from GDP – the largest hit from net exports since records began in 1947. Consumer spending rose just 1.8% – less than half the pace of the previous quarter – while federal spending fell 5.1%. The stock market logged its worst start to a presidency in more than 50 years, and consumer confidence dropped for the fifth straight month. (NPR / ABC News / CNBC / Washington Post / Axios / Wall Street Journal / CNN)

2/ Trump blamed Biden for the U.S. economy’s first quarterly contraction in three years, saying: “This is Biden. That’s not Trump.” He dismissed any connection to his own policies: “This will take a while, has NOTHING TO DO WITH TARIFFS,” and asked Americans to “give us a pass on the first month.” Trump also preemptively blamed the second quarter on Biden, saying, “You could even say the next quarter is sort of Biden.” He promised a future boom “like no other,” even as hiring slowed and markets tumbled. (NBC News / New York Times / Bloomberg / Washington Post / CNBC / Reuters / Washington Post / USA Today)

3/ Trump suggested that American kids may have to live with “two dolls instead of 30” as his tariffs on China drive up prices and limit imports. “Maybe the two dolls will cost a couple bucks more,” he added, brushing off concerns about product shortages. Retailers, however, have warned of empty shelves and rising costs ahead of the holidays. Trump, nevertheless, dismissed concerns: “Much of it we don’t need.” (Axios / HuffPost / USA Today / Associated Press / CBS News / Business Insider)

4/ Trump told the U.S. Court of International Trade that judges have no authority to question his use of emergency powers to impose tariffs, claiming only Congress can review such decisions. The Justice Department argued courts shouldn’t “second-guess the president’s judgment,” even as small businesses called the national emergency “a figment of his own imagination.” The Senate, meanwhile, is preparing to vote on a resolution to block Trump’s tariffs, with Republicans Susan Collins and Lisa Murkowski backing the effort. Collins said the tariffs are “too broad” and supported the disapproval “to send a message.” House Speaker Mike Johnson, however, dismissed immediate congressional action, but warned that if power between branches becomes “imbalanced,” lawmakers may need to step in. (Bloomberg / Politico / Axios / Politico / CBS News / Politico)

5/ A federal judge ordered the release of Columbia student Mohsen Mahdawi, who was detained by ICE during his citizenship interview. “Even another day of detention is not to be tolerated,” Judge Geoffrey Crawford said, comparing the government’s actions to the McCarthy-era Red Scare. Mahdawi, a green-card holder and pro-Palestinian protest organizer, was targeted under a rarely invoked immigration clause that labels dissenters as foreign policy threats. “To President Trump and his Cabinet: I am not afraid of you,” Mahdawi said after walking free. Still, DHS defended the arrest, claiming Mahdawi supported terrorists and antisemitic violence, but offered no charges and relied on disputed, years-old allegations. (Politico / NBC News / NPR / Washington Post / ABC News / Wall Street Journal)

6/ Trump said he “could” bring Kilmar Abrego Garcia back from El Salvador but won’t, claiming Garcia “is not” the innocent man his supporters say he is. The statement came in an ABC interview where Trump admitted he has the power to act – “There’s a phone on this desk […] I could” – but blamed unnamed lawyers for blocking it: “I’m not the one making this decision.” Trump’s remarks directly undercut his administration’s legal claim that it lacks authority to return Garcia, despite a Supreme Court order requiring it to “facilitate” his return. Trump also defended sharing a photo of Garcia’s tattooed hands labeled with “MS-13,” which experts say was digitally altered, saying: “He had MS as clear as you can be.” Federal judges have accused the administration of acting in bad faith and “spurning” court orders, with one writing, “This should be shocking […] to the intuitive sense of liberty that Americans […] still hold dear.” (New York Times / CNN / The Hill / Axios / Bloomberg / Wall Street Journal / NBC News)

The midterm elections are in 552 days.

Four years ago today: Day 101: "One god-awful mess."
Six years ago today: Day 831: Meritless.
Seven years ago today: Day 466: Panic mode.