BUSINESS

Trump's Trade Wars: How Tariffs Are Shaking Up Jobs

USASat Aug 02 2025

The U. S. job market is feeling the heat from President Trump's trade policies. Hiring has taken a nosedive, adding only 73,000 jobs last month, which is way below what experts expected.

Worsening Job Numbers

  • Previous months' job numbers were revised down by a huge 258,000.
  • The unemployment rate has gone up to 4.2%, with more people giving up on finding work.

Economists' Warnings

Economists have been warning about this for a while. They say Trump's tariffs and strict immigration rules are creating uncertainty, making businesses nervous about hiring.

"The job market is taking a hit, and it might get worse."

  • Scott Anderson, Chief Economist

Trump's Response

Trump, however, isn't taking the blame. He's even called for firing the person in charge of the job reports, saying they're not competent. But the revisions are normal and happen every month as more data comes in.

Impact of Tariffs

Trump's tariffs are supposed to bring back manufacturing jobs, but so far, it's not working. Factories actually cut jobs last month. Meanwhile, healthcare is one of the few areas still hiring, but it's not enough to make up for the losses elsewhere.

Changing Job Market Dynamics

The job market was once booming, with employers offering all kinds of perks to attract workers. But now, people are quitting their jobs less often, showing they're not as confident about finding something better.

Pressure on the Federal Reserve

All this uncertainty is putting pressure on the Federal Reserve to cut interest rates, which could make borrowing cheaper for things like mortgages and car loans. But for now, the future of the job market looks shaky, and it's all tied to Trump's trade wars.

questions

    What historical examples can be used to predict the potential outcomes of the current trade policies on the U.S. economy?
    How have other countries responded to U.S. tariffs, and what impact might their responses have on the U.S. economy?
    Is there any evidence to suggest that the Federal Reserve is colluding with the Trump administration to influence interest rates?

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