https://www.pbs.org/newshour/nation/shipments-from-china-fall-as-trumps-tariffs-loom-over-economy
WASHINGTON (AP) — American businesses are cancelling orders from China, postponing expansion plans and hunkering down to see what trade policy surprises President Donald Trump plans to spring on them next.

The president’s massive and unpredictable taxes on imports seem likely to mean emptier shelves and higher prices for American shoppers, perhaps within weeks.

And the higher costs and paralyzing uncertainty could exact an economic toll: U.S. consumers are in the biggest funk since COVID-19 hit five years ago, and economists say recession risks are climbing.

An early sign of the damage emerged on Wednesday when the Commerce Department released its first look at first-quarter economic growth.

The U.S. economy shrank 0.3% from January through March, the first drop in three years. Gross domestic product — the nation’s output of goods and services — was down from 2.4% in the last three months of 2024. Imports shaved 5 percentage points off first-quarter growth. Consumer spending also slowed sharply.

Separately, a report from payroll provider ADP showed that companies added just 62,000 jobs in April, about half of what was expected, and down from 147,000 in March. It’s a potential signal that businesses may be taking a more cautious approach to hiring amid uncertainty over tariffs.

Asked how much of deterioration in the world’s biggest economy could be traced to Trump’s erratic policies, Boston College economist Brian Bethune said: “All of it.’’