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The U.S. economy expanded by 3.3% in the second quarter of 2025, reversing a 0.5% contraction in the first quarter, the Bureau of Economic Analysis reported.
The figure outpaces the preliminary official estimate released in July, which stood at 3%, primarily reflecting a decrease in imports and an increase in consumer spending, partly offset by declines in investment and exports, it said.
The report noted that gross domestic product (GDP) was also lifted by a decline in imports, which are subtracted when calculating overall economic output. Many companies reduced shipments after stockpiling earlier in the year to avoid higher duties linked to the tariff hikes introduced by President Donald Trump.
In June, the U.S. trade deficit narrowed by 16% to $60.2 billion, while the goods deficit declined 10.8%. This effect masked underlying pressures in trade, as the reduction in imports temporarily contributed to the headline growth rate.
The turnaround of the first quarter has increased pressure from the White House for the Federal Reserve to lower interest rates, with Trump pointing to faster growth as evidence for easing monetary policy.
Since returning to the office in January, Trump has launched a series of tariff measures covering nearly all U.S. trading partners. These included a 10% levy applied broadly, alongside higher rates targeting specific countries and products.
The administration also imposed duties on steel, aluminum, and automobiles, in addition to tariffs aimed directly at Canada and Mexico. China, the world’s second-largest economy, was another key target, prompting a new phase of trade tensions between Washington and Beijing.
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