this post was submitted on 15 Oct 2025
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GDP is calculated by subtracing imports. Last quarter, GDP grew by 3.8% in the US compared to the previous quarter, which would normally be extremely good.
The import situation tells a different story. The previous quarter, suppliers were bulking up on imports because they wanted to get ahead of the tariffs. That meant there was a big subtraction from those numbers. Now the suppliers are sitting on what they have and not importing anything, meaning there's only a tiny subtraction to last quarter's numbers. These sorts of big shifts are never good things.