Reuters: inventory build-up ahead of tariffs could hit the growth of the US economy

As reported by Reuters journalists, in the first quarter, the US economy experienced a flood of imported goods, brought hastily into the country by companies in an attempt to make it in time before the introduction of high tariffs by President Donald Trump.

Meanwhile, the agency experts suggest that the Commerce Department's preliminary GDP report on Wednesday will not factor in the impact of those heavy imports. 

According to a Reuters poll of economists, the US GDP was likely to have grown at an annualized rate of 0.3% in the first quarter. If these expectations are met, this would be the slowest pace since the second quarter of 2022.

However, the survey was conducted before Tuesday's release of data showing the trade deficit widened sharply in March amid record imports. That prompted many economists to drastically lower their GDP estimates. Thus, according to Goldman Sachs evaluations, considering the latest data, the US GDP could have actually contracted by 0.8% in the first quarter.

The agency also points out that due to higher tariffs and financial uncertainty, consumer confidence in the US is now at a five-year low, and business sentiment has fallen.