Datanomics: Net exports' contribution to US GDP growth at its peak

Net exports of goods and services contributed 4.99 percentage points to GDP growth in the second quarter of 2025, the highest in the US since at least 1947

Donald Trump’s move to raise tariffs on a slew of countries has paid dividends to the US economy in the second quarter of 2025 (Q2CY25). It grew by 3 per cent in Q2 year-on-year (Y-o-Y), against a 0.5 per cent GDP contraction Y-o-Y in Q1, due to rising exports and a fall in imports in Q2. However, this data does not factor in the tariff hike on Indian imports. It is too early to forecast whether this trend will continue, since a huge spike in imports in Q1, in anticipation of tariff hikes, was followed by a fall in imports