The U.S. economy rebounds to 3% growth in second quarter — but tariffs skew picture

The U.S. economy grew this spring after a slowdown earlier in the year.

The nation's gross domestic product — the broadest measure of economic activity — grew at an annual rate of 3% in April, May and June, according to a report Wednesday from the Commerce Department. That's a turnaround from the three previous months when GDP contracted at a rate of 0.5%.

Both measures were somewhat distorted by big swings in international trade as businesses and consumers first braced for, then reacted to, President Trump's worldwide tariffs. Imports surged early in the year, as businesses tried to stockpile foreign goods before the tariffs took effect. That had the effect of depressing GDP in January, February and March, because imports are subtracted from the government's measure of economic activity.

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