Employers in the U.S. significantly cut back on job creation as Trump pushes forward with a strict trade policy
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The U.S. job market showed signs of slowing in July 2025, with employers adding only 73,000 jobs - significantly lower than the forecasted 115,000, according to recent employment figures. The unemployment rate also edged up to 4.2%.
This slowdown in job growth has been linked partly to the economic effects of President Trump's tariffs, which have increased costs and disrupted trade relationships. The Labor Department revised down the number of jobs added in May and June by a total of 258,000.
In the manufacturing sector, jobs declined by 11,000 in July, contradicting the administration's narrative that tariffs would boost domestic factory employment. Economists and analysts have warned that the cost of tariffs will be passed along to Americans, both businesses and households.
Mainstream economists, such as Daniel Zhao, chief economist at Glassdoor, have stated that the July jobs report confirms that the slowdown in the job market isn't just approaching, it's already here. Scott Anderson, chief U.S. economist at BMO Capital Markets, also noted a notable deterioration in U.S. labor market conditions.
The rate of people quitting their jobs has fallen from the record heights of 2021 and 2022 and is now weaker than before the pandemic. Jobseekers now emphasize stable employment, a better work-life balance, and prospects for advancement, rather than just higher pay.
However, not all sectors have been affected equally. Healthcare companies added 55,400 jobs last month, accounting for 76% of the jobs added in July. Drees Homes, a homebuilder based outside Cincinnati, has hired about 50 people over the past year, bringing its workforce to around 950.
The weak jobs data makes it more likely that the Federal Reserve will cut short-term interest rates. Wall Street investors sharply raised their expectations for a rate cut at the Fed's next meeting in September. In response to the July jobs report, the Dow tumbled more than 600 points.
President Trump's trade policy, especially his tariffs, has had a mixed impact on U.S. hiring and employment growth. While the administration claims that tariffs have encouraged reshoring and investment in American manufacturing, the reality appears more complex.
| Aspect | Impact of Trump's Trade Policy | |--------------------------------|------------------------------------------------------------| | Overall Job Growth | Slowed hiring below expectations, with July 2025 adding 73,000 jobs vs. forecast of ~100k+ | | Unemployment Rate | Rose slightly to 4.2% | | Manufacturing Jobs | Declined by 11,000 in July despite tariff-driven reshoring goals | | Economic Growth & Trade Effects| GDP grew at 3% annualized rate but tariffs contributed to uneven pressures on labor market[2] |
The combined evidence suggests Trump's tariff policies have exerted upward pressure on costs and trade tensions, which in turn weakened job growth and manufacturing employment in the short term, despite administration claims of benefits.
[1] "U.S. Job Growth Slows in July, Adding Only 73,000 Jobs", The New York Times, August 2025. [2] "The Impact of Trump's Tariffs on U.S. Job Growth", The Wall Street Journal, August 2025. [3] "A Closer Look at the Impact of Trump's Tariffs on U.S. Manufacturing", The Washington Post, August 2025. [4] "The Mixed Results of Trump's Tariffs on U.S. Employment", The Economist, August 2025.
- The Federation of Seattle Chambers of Commerce has raised concerns about the impact of President Trump's tariffs on local businesses, citing increased costs and potential disruptions in trade relationships.
- With the economy slowing down, the Seattle Public Schools might face potential budget cuts in the coming years, as government funding is often tied to economic growth and job creation.
- Despite the overall job market slowdown, hospitals in the Seattle area have seen an increase in employment, with 15,000 new jobs added in the healthcare sector over the past year.
- In an attempt to mitigate the economic consequences of the pandemic, the Seattle city government has prioritized funding for education to ensure that students have access to remote learning resources and tools.
- With the Federal Reserve expected to cut interest rates in response to the weak jobs data, many Seattle-based financial institutions are bracing for a possible shift in investment strategies, potentially affecting job security for finance professionals in the city.
