US President Donald Trump on Wednesday defended his sweeping tariff policy, conceding that it may lead to fewer and costlier consumer goods in the United States. But he insisted the economic damage would fall harder on China.“Maybe the children will have two dolls instead of 30 dolls,” Trump said during a Cabinet meeting at the White House. “So maybe the two dolls will cost a couple bucks more than they would normally.”His remarks came just hours after the Commerce Department reported that the U.S. economy shrank by 0.3% in the first quarter—the first contraction since Trump’s return to office in January. The downturn was largely driven by a rush in imports, as businesses raced to beat the new tariffs on goods such as steel, aluminium, and automobiles.Biden blamed as Markets falterAs the GDP data rattled financial markets, Trump turned to his social media platform to lay the blame on his predecessor.“This is Biden’s Stock Market, not Trump’s,” the president posted. “Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden ‘Overhang.’ This will take a while, has NOTHING TO DO WITH TARIFFS.”The message was clear: Trump sees tariffs not as a burden but as a long-term tool to pressure trading partners and attract investment back into the U.S. economy.Economic pain now, payoff later?Inside the Cabinet meeting, Trump claimed China was struggling more than the U.S. under the tariff regime. “They are having tremendous difficulty because their factories are not doing business,” he said. “Much of it we don’t need.”He brushed aside warnings from U.S. retailers who have said the tariffs could make toys, Halloween costumes, and other imported goods more expensive during the holiday season. Retailers have also warned they cannot shift supply chains fast enough to avoid passing costs onto consumers.Despite growing concerns over inflation, Trump told ABC News on Tuesday that the economy would have collapsed without his tariffs. “Everybody’s gonna be just fine,” he said.Democrats slam random trade policyDemocrats seized on the economic data as evidence that Trump’s policies are destabilising the economy. Senator Jeff Merkley of Oregon said, “Trump has been in office for only 100 days, and costs, chaos and corruption are already on the rise. The economy is slowing, prices are going up, and middle-class families are feeling the pinch.”Heather Boushey, a former Biden adviser, said the GDP contraction was directly tied to Trump’s mismanagement. “In just 100 days, President Trump has taken the U.S. economy from strong, stable growth to negative GDP. This astonishing turn of fortune is directly due to the incoherence of his economic policy and his mismanagement of federal policy more generally.”Representative Suzan DelBene added, “We’ve only seen the beginning of the dangerous impacts from Trump’s random policies. U.S. manufacturers still depend on parts and components from China. Chaos and dysfunction are not going to help build investment. A strong economy needs stability and certainty. We haven’t seen that.”Contradictions in the CabinetWhile Trump boasted about major foreign investments, such as Apple and Taiwan Semiconductor Manufacturing Co. (TSMC), the details tell a more complicated story. TSMC’s Arizona plant was first announced in 2020, during Trump’s earlier term, but subsequent expansions were made under Biden’s presidency and supported by the bipartisan CHIPS and Science Act.Still, Trump claimed, “They’re building because of the tariffs.”Commerce Secretary Howard Lutnick praised the growth of chip manufacturing during a recent visit to TSMC’s site. But experts noted the government's financial incentives under Biden were a key driver of expansion—not trade pressure alone.US recession fears and reassurancesDespite signs of a cooling economy, White House trade adviser Peter Navarro downplayed concerns. He said the GDP dip was a “one-shot deal” due to import timing and predicted that Trump’s planned tax cuts would soon revive growth.“All we’re seeing is good, strong news,” Navarro said. “So the idea that there’s a recession coming should be heavily discounted.”Unemployment remains at a relatively healthy 4.2%, but economists caution that ongoing trade tensions and inflation risks could still erode consumer and corporate confidence in the months ahead.As Trump marked his first 100 days back in the White House, he pointed to tariffs, mass federal layoffs, and reshoring of industry as hallmarks of his economic reboot. But the early results remain mixed.With markets shaky, the economy contracting, and consumer goods getting pricier, the Trump administration insists it is building a long-term strategy to rebalance trade.Whether Americans are prepared for “two dolls instead of 30” may well define the political and economic path ahead.(With inputs from Reuters, AP)