By PAUL WISEMAN, Associated Press Economics Writer

WASHINGTON (AP) — The U.S. economy rebounded this spring from a first-quarter downturn caused by fallout from President Donald Trump’s trade wars.

In an upgrade from its first estimate, the Commerce Department said Thursday that U.S. gross domestic product — the nation’s output of goods and services — expanded at a 3.3% annual pace from April through June after shrinking 0.5% in the first three months of 2025. The department had initially estimated second-quarter growth at 3%.

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The first-quarter GDP drop, the first retreat of the U.S. economy in three years, was mainly caused by a surge in imports — which are subtracted from GDP — as businesses scrambled to bring in foreign goods ahead of Trump’s tariffs. That trend reversed as expected in the second quarter: Imports fell at a 29.8% pace, boosting April-June growth by more than 5 percentage points.

The Commerce Department reported that consumer spending and private investment were a bit stronger in the second quarter than it had first estimated.

Consumer spending, which accounts for about 70% of GDP, grew at a 1.6% annual pace, lackluster but better than 0.5% in the first quarter and the 1.4% the government initially estimated for the second.

Even with an upward revision, private investment dropped at a 13.8% annual pace from April through June. That would be biggest drop since the second quarter of 2020 at the height of the coronavirus pandemic. A reduction in private inventories cut almost 3.3 percentage points off second-quarter GDP growth.

Spending and investment by the federal government fell at a 4.7% annual clip on top of a 4.6% drop in the first quarter.

A category within the GDP data that measures the economy’s underlying strength came in stronger than first reported, growing 1.9% from April-June, same as in the first quarter. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.

Since returning to the White House, Trump has overturned decades of U.S. policy that had favored freer trade. He’s slapped double-digit taxes on imports from almost every country on earth and targeted specific products for tariffs, too, including steel, aluminum and autos.

Trump sees tariffs as a way to protect American industry, lure factories back to the United States and help pay for the massive tax cuts he signed into law July 4.

But mainstream economists — viewed with disdain by Trump and his advisers — say that his tariffs will damage the economy, raising costs and making protected U.S. companies less efficient. They note that tariffs are paid by importers in the United States, who try to pass along the cost to their customers via higher prices. Therefore, tariffs can be inflationary — though their impact so far has been modest.

The erratic way Trump has imposed the tariffs — announcing and suspending them, then coming up with new ones — has left businesses bewildered and uncertain about investments and hiring.

NEW YORK (AP) — The Rev. Al Sharpton will lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives.

The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963.

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Sharpton, in a statement, called DEI the “civil rights fight of our generation.”

Since returning to the White House in January, President Donald Trump has moved to end DEI programswithin the federal government and warned schools to do the same, or risk losing federal money.

In response, Sharpton’s civil rights group, the National Action Network, has encouraged consumers to avoid U.S. retailers that scaled backed policies and programs aimed at bolstering diversity among their employees and reducing discrimination against members of minority groups, women and LGBTQ+ people.

Earlier this year, Sharpton met with Target’s CEO as groups called for a boycott of the retail giant, which joined Amazon, Walmart and other major retailers in foregoing DEI initiatives.

The civil rights leader has also called for “buy-cotts” in support of companies such as Costco that have stuck by their DEI principles despite the conservative backlash.

“Corporate America wants to walk away from Black communities, so we are marching to them to bring this fight to their doorstep,” Sharpton said in a statement ahead of Thursday’s march.

The march is expected to start around 10 a.m. in Foley Square, located in downtown Manhattan near the African Burial Ground that’s the largest known resting place of enslaved and freed Africans in the country.

The square is also near 26 Federal Plaza, the federal government building that’s become a symbol of Trump’s nationwide immigration crackdown.

U.S. Immigration and Customs Enforcement agents have been detaining migrants during their routine appearances at the immigration court located there. A federal judge earlier this month also ordered the Trump administration to improve conditions for migrants jailed there.

Marchers are expected to make their way past Wall Street’s famous Charging Bull statue before the event ends with a speaking program.

New York City mayoral candidates, including incumbent Mayor Eric Adams, state Assembly Member Zohran Mamdani, and former Gov. Andrew Cuomo, are among those expected to join the demonstration.

By MARI YAMAGUCHI, Associated Press

TOKYO (AP) — Japan’s top trade negotiator abruptly canceled a trip to Washington aimed at issuing a joint statement on a tariffs deal with the Trump administration, as a top government spokesman urged the U.S. side to speed up implementation of the agreement.

Trade envoy Ryosei Akazawa was scheduled to leave Tokyo for Washington on Thursday for a 10th round of talks, following up on the agreement announced on July 22.

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But Chief Cabinet Secretary Yoshimasa Hayashi told reporters some details required further consultations, so the trip was postponed.

In July, the two sides agreed on a 15% tax on imports of most Japanese goods, effective Aug. 1, down from an earlier 25% rate announced by President Donald Trump as so-called “reciprocal tariffs” on the major U.S. ally. Japanese officials discovered days later that the preliminary deal would add a 15% tariff to other tariffs and objected. Officials in Washington have acknowledged the mistake and agreed to abide by the agreement on a 15% tariff, and to refund any excess import duties that were paid.

So far, that hasn’t happened.

“We will strongly request the United States to amend its presidential order to correct the reciprocal tariffs and to issue the presidential order to lower tariffs on autos and auto parts,” Hayashi said.

In an interview with Fox News earlier this week, U.S. Commerce Secretary Howard Lutnick said Washington was ready to finalize the deal, in which Japan also pledged to invest up to $550 billion in the United States in coming years.

Plans for Akazawa to visit Washington are undecided, Hayashi said during a daily briefing, with another nudge at the Trump administration.

“Japan and the United States have confirmed the importance of sincere and prompt implementation of the agreement between the two countries,” he said, adding that a deal was essential for the economic security of both countries.

By HYUNG-JIN KIM and KEN MORITSUGU, Associated Press

BEIJING (AP) — North Korean leader Kim Jong Un will make his first visit to China in six years to attend a military parade next week, the two countries said Thursday, in an event that would bring him together with a large group of world leaders for the first time since taking office in late 2011.

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With Russian President Vladimir Putin also coming for the parade, the event will underline the three-way alignment among Beijing, Moscow and Pyongyang in the face of a U.S. push to bolster its alliances with South Korea and Japan.

North Korea’s state media said Kim was invited to visit China by President Xi Jinping. Kim will be among 26 foreign leaders who attend next Wednesday’s parade in Beijing to mark the 80th anniversary of the end of World War II and China’s resistance against Japan’s wartime aggressions, China’s foreign ministry said.

“We warmly welcome General Secretary Kim Jong Un to China to attend the commemorative events,” Hong Lei, China’s assistant minister of foreign affairs, told a press conference. “Upholding, consolidating and developing the traditional friendship between China and the DPRK is a firm position of the Communist Party of China and the Chinese government.”

DPRK refers to the Democratic People’s Republic of Korea, North Korea’s official name.

Kim’s first attendance of a multination event

Since inheriting power upon his father’s death in December 2011, Kim has met Xi, Putin, U.S. President Donald Trump, former South Korean President Moon Jae-in and others. But all those summits were bilateral meetings and Kim hasn’t attended any big multilateral events with foreign leaders.

“Given that other leaders attending are mostly from pro-Russia and pro-Chinese countries, Kim likely intends to form solidarity with those Global South countries while showing he’s leader of a normal country,” said Moon Seong Mook, an analyst for the Seoul-based Korea Research Institute for National Strategy.

Observers say Kim is likely emboldened by his country’s expanding cooperation with Russia, which has helped him bear the brunt of U.S.-led sanctions and break out of diplomatic isolation. North Korea has been supplying troops and ammunition to support Russia’s war against Ukraine in return for economic and military assistance.

Others coming for the parade include the leaders of Iran, Belarus, Serbia, Cuba, Indonesia, Myanmar, Pakistan and Malaysia. No leaders from major Western countries including the U.S. are expected to attend, in part because of their differences with Putin over the war in Ukraine. The parade is expected to feature some of China’s newest weaponry and a speech by Xi.

It’ll the first time Xi, Kim and Putin gather at the same event

China, North Korea and Russia are embroiled in separate confrontations with the U.S., but they haven’t formed a clear three-way alliance so far.

Xi, Putin and Kim haven’t met in trilateral formats, though they’ve met one another bilaterally.

“Kim’s attendance is significant for his own international stature, but it also holds weight in the balance of alliances between the U.S. and China,” said Soo Kim, a former CIA analyst. “Xi, Putin, and now Kim attending the parade cements a visible statement about the alignment between the three countries.”

The three leaders likely share desires to check the strengthening cooperation among the U.S., South Korea and Japan, which have been meeting regularly and expanding trilateral military exercises. Despite their shared goals, it’s not clear how far China, North Korea and Russia will go to further cement ties.

China remains the largest purchaser of Russian oil and technology provider supporting the Russian war machine, though it is officially neutral in the conflict.

China has also long been North Korea’s biggest trading partner and main aid provider, but there have been questions about their relations in recent years. Chinese group tours to North Korea have remained suspended for years.

Kim’s China trip may signal his interest in resuming US diplomacy

Kim’s visit to China could also be related to efforts to restart diplomacy with Trump, who has repeatedly highlighted his relationship with Kim and expressed his hopes to resume talks.

In all, Kim traveled to China four times from 2018 to 2019 to meet Xi. His first and fourth visits happened just before he met Trump for their earlier high-stakes nuclear negotiations.

“Pyongyang’s illicit cooperation with Moscow has strained ties with Beijing, even as China’s political and economic support remains vital for the North Korean regime,” said Leif-Eric Easley, professor of international studies at Ewha Womans University in Seoul.

“To reengage Trump from a position of strength, Kim seeks to repair relations with Xi, and attending the parade in Beijing is a highly visible way of doing that,” Easley said.

During a meeting with South Korean President Lee Jae Myung in Washington earlier this week, Trump spoke of one of his past summits with Kim at the Korean Demilitarized Zone. Responding to a question over whether he would return to the Demilitarized Zone, Trump told reporters, “I loved it. Remember when I walked across the line and everyone went crazy.”

North Korea has so far dismissed Trump’s outreach, but many analysts say it would return to talks if it determines the U.S. would make bigger concessions.

North Korea likely wants greater cooperation with China

While Kim’s foreign policy priority is Russia now, many observers expect him to take steps to improve ties with China. It’s unclear if North Korea and Russia would maintain the same level of cooperation after Ukraine war ends.

In 2023, about 97% of North Korea’s external trade was with China, while 1.2% was with Russia, according to Chinese data.

Cheong Seong-Chang, deputy head of private Sejong Institute in South Korea, said Kim likely decided to go to China to ask for assistance as North Korea needs resources for lavish celebrations of two domestic events — the 80th anniversary of the ruling Workers’ Party in October and a party congress early next year.

Kim reported from Seoul, South Korea. Christopher Bodeen in Taipei, Taiwan contributed to this report.