US economy shrank 0.5% in the first quarter, worse than earlier estimates

Foundation of US economy is domestic consumption. The current administration has significantly increased taxes - in the form of tariffs - on that consumption. So, the results are and are going to be as expected by any economy textbook.

Additional obvious effect of tariffs is introducing friction, to say the least, into supply chains, similar to how pandemics did at the beginning with about the same result - inflation and loss of productivity.

I personally have no panic here though - during my quarter of century here i noticed that US economy is extremely resilient and can take a lot of hits and damage, can even get knocked down, yet nothing can get it knocked out, and it would always come back even more roaring. It is though very hard on those who gets the sharp end of stick here, i'd wish that the society would get a bit more empathetic to them.

The hope, at least, is that the tariffs will encourage the creation of more, better, jobs in the US through re-shoring. This would, in theory, also increase domestic consumption though the time frame is longer.