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Why do econ journalists keep making this basic mistake?
Imports don't subtract from GDP. Stop saying they do!
[T]he main driver of the first-quarter contraction was Trump’s trade war…Businesses rushed to get ahead of tariffs…Imports rose at the fastest pace since the third quarter of 2020… Imports subtract from the Commerce Department’s calculation of GDP, since they represent spending on foreign-made goods and services. This economic slowdown came primarily from a dramatic increase in imports — which count against GDP — as businesses rushed to purchase foreign goods ahead of President Donald Trump’s promised tariffs. The latest numbers were overwhelmingly dragged lower by a surge in imports…GDP math seeks to measure the total production within a country’s borders, so statisticians add exports and subtract imports[.]
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