Why Trump Says Democrats Shaved ‘Two Points’ Off Economic Growth

The United States economy grew more slowly than expected in the fourth quarter, as investment gains were offset by declines in government spending and exports.

Gross domestic product increased at a 1.4% annualized rate last quarter, the Commerce Department’s Bureau of Economic Analysis said in its initial estimate of fourth-quarter GDP on Friday. The figure missed the Dow Jones estimate, which had forecasted that GDP would rise at a 2.5% pace. 

Trump blamed the ‘Democrat Shutdown’ for the fourth-quarter economic slowdown. 

“The Democrat Shutdown cost the United States of America at least two points in GDP. That’s why they are doing it, in mini form, again. No shutdowns!” The President added, “Also, lower interest rates,” and that Fed Chair Jerome Powell “is the worst.” 

Just four days into the government shutdown that began in October, Press Secretary Karoline Leavitt warned that the shutdown could result in weekly losses of $15B in GDP. Oxford Economics predicted the shutdown would reduce economic growth by 0.1 to 0.2 percentage points per week. They estimated a quarter-long shutdown would have impacts of 1.2 to 2.4 percentage points. The government shutdown ultimately lasted around half a quarter before ending in November. 

White House spokesperson Kush Desai told the Daily Wire the numbers showed a robust private sector-led economy despite the shutdown. 

“Today’s GDP report showed that President Trump continues to deliver robust private sector-led economic growth with strong consumption and investment. Even with the Democrat Government Shutdown dragging the country down last fall, GDP growth for 2025 smashed the Federal Reserve, Congressional Budget Office, and International Monetary Fund’s ‘expert’ predictions. He added, “As President Trump’s proven agenda of tax cuts, deregulation, tariffs, and energy abundance continues taking effect and as trillions in investments continue pouring in, America’s economic comeback is set to only accelerate in 2026.” 

Not all economists agreed. Chief Economist for Europac Peter Schiff said, “Data confirms Trump’s ‘hottest economy’ is cooling fast.”

Many economists argue that President Trump’s tariffs curb economic growth. On Friday, the Supreme Court issued a ruling striking down Trump’s use of sweeping tariffs through the International Emergency Economic Power Act (IEEPA).

Senate Minority Leader Chuck Schumer said the Supreme Court ruling was “a victory for the wallets of every American consumer.”