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355 points Aloisius | 2 comments | | HN request time: 0s | source
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Aloisius ◴[] No.44390494[source]
I'm a bit confused about the bit about the "Imports expanded 37.9%, fastest since 2020, and pushed GDP down by nearly 4.7 percentage points" bit.

Presumably when they calculated GDP previously, they hadn't seen quite as much imports, but had seen higher spending, thus they misattributed some of it to domestic products rather than imports, though I'm a bit confused as to how they underestimated imports given everything is declared. Perhaps some changes in the price index?

Though other articles talk about the expected GDP next quarter being higher because they don't expect a surge of imports to continue, which makes no sense to me unless one assumes spending remains the same with or without imports.

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outside1234 ◴[] No.44390709[source]
My theory would be that a lot of companies imported a ton in the first quarter knowing that tariffs were coming.
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1. Espressosaurus ◴[] No.44390730[source]
My company did that. Along with rushed some deliveries that weren't 100% ready to avoid the sudden spike in tariffs.

I also personally did that for expensive gear I was otherwise planning on waiting on. And now I'm not going to be buying that over the next 2-5 years like I was originally planning.

It's a big bolus of spending that will not be replicated in the future.

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2. don_neufeld ◴[] No.44391163[source]
Yup, did the same, ton of new hardware.

Last week I was looking at a proposal from a supplier that's got a ~8K "tariff" line on it and thinking... y'know, I can wait on that project.