US Hiring Slumps Sharply As Trump’s Trade War Takes Toll On Economy

The United States employers added only 73,000 jobs last month, which is well below the expected 115,000, following President Donald Trump’s sweeping and erratic trade policies that began to impact the labour market hard. 

The Labour Department’s latest report also revised May and June job figures downward by a staggering 258,000, further underscoring a deepening slowdown.

Unemployment Rate in the U.S

The unemployment rate edged up to 4.2 per cent, with 221,000 more Americans entering unemployment and labour force participation slipping.

Scott Anderson, chief U.S. economist at BMO Capital Markets, warned, “A notable deterioration in U.S. labour market conditions appears to be underway,” citing tariffs and immigration curbs as major culprits.

Markets responded swiftly—the Dow plunged more than 600 points on Friday, shaken by fears of a hard landing for the economy. Trump’s aggressive tariff strategy, designed to revive U.S. manufacturing and fund his recent tax cuts, is instead triggering price hikes across major consumer brands like Walmart, Ford, Nike, and Procter & Gamble.

Goldman Sachs economists estimate American consumers and businesses are bearing most of the cost of the tariffs, while foreign exporters have absorbed just one-fifth. New tariffs announced overnight, set to take effect on August 7, are fueling further uncertainty.

Blerina Uruci, chief U.S. economist at T. Rowe Price, said, “Employment growth essentially stalled as we dealt with so much unpredictability.”

While Trump pitched tariffs as a boost to U.S. manufacturing, the sector lost 11,000 jobs last month—its third straight monthly decline. Cuts also hit federal jobs (down 12,000) and administrative and support services (down nearly 20,000).

“We’re finally in the eye of the hurricane,” said Glassdoor economist Daniel Zhao, adding, “The slowdown isn’t just approaching, it’s here.” (Associated Press Inputs)

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