Fri Aug 01 23:19:56 UTC 2025: **Summary:**
The U.S. job market is showing signs of significant slowdown, with July 2025 seeing a drastic drop in job creation compared to expectations and substantial revisions to previous months’ figures. Economists attribute this downturn to President Trump’s trade policies, particularly tariffs, which have created uncertainty and increased costs for businesses and consumers. This has led to price hikes by major companies and a general reluctance to hire. Despite Trump’s claims that the tariffs will boost manufacturing, the sector has actually lost jobs. In response to the negative jobs report, President Trump is seeking to fire the head of the Labor Department’s Bureau of Labor Statistics and has defended his trade policies. This weak economic data increases the likelihood of the Federal Reserve cutting interest rates.
**News Article:**
**U.S. Job Growth Plummets Amid Trade War Turmoil, Sparks Recession Fears**
**Washington, August 2, 2025** – The U.S. economy is facing mounting challenges as new data reveals a significant slowdown in job creation, raising concerns about a potential recession. July saw only 73,000 jobs added, far below the expected 115,000, with substantial downward revisions to figures from May and June.
Economists are pointing the finger at President Trump’s trade policies, specifically his aggressive use of tariffs, as the primary cause. Businesses are reportedly paralyzed by the uncertainty and increased costs resulting from these policies. Several major companies, including Walmart and Ford, have already increased prices to offset tariff expenses, passing costs on to consumers.
“We’re finally in the eye of the hurricane,” said Daniel Zhao, chief economist at Glassdoor, highlighting that the slowdown isn’t just approaching—it’s here.”
Adding fuel to the fire, President Trump has responded to the disappointing report by calling for the dismissal of the head of the Labor Department’s Bureau of Labor Statistics, accusing her of political bias and questioning the validity of the data revisions.
Despite the administration’s claims that tariffs would revitalize manufacturing, the sector has experienced job losses. The slowdown puts increased pressure on the Federal Reserve to cut interest rates, which could potentially alleviate some of the economic pressure.
The weakening job market represents a stark contrast to the hiring boom of recent years, when companies offered lucrative incentives to attract and retain employees. While there are differing views of how bad the data will be for the US economy, Blerina Uruci stated that “I’m not overly pessimistic on the US economy based on this morning’s data”. She does think that hiring will remain muted in the coming months as the number of available workers remains limited due to reduced immigration and an ageing population.
The coming weeks and months will be crucial in determining the long-term impact of these developments on the U.S. economy and the global trade landscape.
First Piper 