Trump Blames Biden for Weak GDP Despite Previously Taking Credit for Market Gains

President Donald Trump on Wednesday deflected blame for the U.S. economy’s slowdown, pointing to former President Joe Biden as the cause—even as he continues to take credit for past stock market gains.

Trump Shifts Blame for GDP Drop

Speaking during a televised Cabinet meeting, Trump said the 0.3% decline in U.S. GDP during the first quarter of 2025 was not a reflection of his leadership, but rather a result of what he called the poor economic legacy of the Biden administration. “That’s Biden, not Trump,” he claimed, adding, “You could even say the next quarter is sort of Biden.”

Earlier in the day, Trump posted on Truth Social, saying:

“This is Biden’s stock market… He left us with bad numbers.”

Trump also insisted that the benefits of his tariff-heavy trade policy would soon materialize and boost the economy, saying companies are beginning to relocate to the U.S. in “record numbers.”

Contradictory Messaging

Trump’s latest statements stand in contrast to comments he made in January, when he claimed credit for a rising stock market, calling it “THE TRUMP STOCK MARKET.” He argued at the time that markets were rallying in anticipation of his return to power.

At a campaign rally shortly before his inauguration, Trump said:

“It’s too braggadocious, but we’ll say it anyway: the Trump effect. It’s you. You’re the effect.”

Economic Context

The 0.3% GDP contraction marks the weakest quarterly performance since early 2022. Over the past decade, GDP has only fallen three times—twice during the 2020 pandemic and once this quarter.

Since taking office in January, the Trump administration has aggressively pushed tariffs, cut federal spending, and reduced the size of the federal workforce, all of which have drawn concern from economists about a potential recession.

In a March address to Congress, Trump acknowledged there would be “a little disturbance” from his economic agenda but insisted that it wouldn’t be significant. By April, some economists were warning of serious risks. Torsten Slok, chief economist at Apollo Global Management, estimated a 90% chance of a so-called “Voluntary Trade Reset Recession.”

The Bottom Line

Despite now distancing himself from early 2025 economic data, President Trump has repeatedly taken credit for strong market performances—especially when he believed they reflected optimism about his return to office. As economic uncertainty grows, so does scrutiny of how much accountability Trump is willing to accept for the direction of the U.S. economy.