No, imports do not reduce GDP—here is why
After many quarters of healthy expansion, US economic activity abruptly contracted in the first quarter of 2025—President Trump’s first quarter in office. How did a strong economy begin to falter so quickly? Many, if not most, commentators attributed the decline to a surge in imports dragging down GDP. In truth, however, imports have no direct effect on GDP. Because of its popularity, it is important to debunk the myth that imports reduce GDP.| Rangvid’s Blog
