The Globe and Mail reports in its Friday edition that the U.S. economy contracted at an annual rate of 0.5 per cent from January to March, according to the Commerce Department, marking a decline from a previous estimate of a 0.2-per-cent drop. An Associated Press dispatch to The Globe reports that this deterioration was driven by a spike in imports as U.S. businesses and households rushed to buy foreign goods ahead of impending tariffs from President Donald Trump. Economists had expected no changes in the final estimate. The January-March drop in gross domestic product reversed a 2.4-per-cent gain in the last three months of 2024 and marked the first time in three years that the economy contracted. Imports expanded 37.9 per cent, the fastest since 2020, and pushed GDP down by nearly 4.7 percentage points. Consumer spending also slowed sharply, expanding just 0.5 per cent, down from a robust 4 per cent in the fourth quarter of last year. It is a significant downgrade from the Commerce Department's previous estimate. Consumers have become anxious since Mr. Trump imposed tariffs on imports, fearing they will affect their finances. The Conference Board reported that Americans' view of the U.S. economy worsened in June.