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U.S. Job Market Stagnant Since President Trump’s Tariff Increase

2025 wasn’t the most stellar year for job creation.

The latest data from the Bureau of Labor Statistics shows that the U.S. job market has remained stalled since the Trump Administration imposed across-the-board tariffs, with the slowdown intensifying after President Trump’s “Liberation Day” tariff announcement.

The group Tariffs Cost US, which opposes the President’s tariff increases, claims that the U.S. manufacturing sector has lost jobs every month since April, including roughly 8,000 positions in December alone, while construction payrolls declined by 11,000 jobs.

“The December jobs report caps a year of sluggish job growth, with the fewest jobs added outside of a recession since 2003. Economists have consistently attributed job losses and rising costs to tariffs,” the group said.

Tariffs Cost US also released stories by news outlets showing the negative effects from the higher tariffs.

The Associated Press (AP) reported that sluggish hiring closes out a frustrating year for job seekers though unemployment slips to 4.4% and manufacturing, construction and retail companies all shed jobs.

“Retailers cut 25,000 positions, a sign that holiday hiring has been weaker than in previous years. Manufacturers have shed jobs every month since April, when Trump announced sweeping tariffs intended to boost manufacturing, and December’s report caps a year of sluggish hiring, particularly after April’s “liberation day” tariff announcement by Trump,” reported the AP.

Wall Street Journal: U.S. Has Lost Manufacturing Jobs Every Month Since ‘Liberation Day’ “American manufacturers shed about 8,000 jobs in December, according to the Labor Department, marking the eighth straight month of losses since President Trump’s “Liberation Day” tariffs in April.”

“The recent declines have extended a slow-but-steady contraction in which about 200,000 U.S. manufacturing roles have disappeared since 2023.”

Reuters: US job growth stuck in slow gear in December; unemployment rate dips to 4.4%

The retail industry shed 25,000 jobs, while manufacturing lost another 8,000 positions. Economists have attributed factory job losses to the Trump administration’s tariff increases. Trump has ironically defended the import duties as necessary to revive the manufacturing industry. Construction payrolls decreased by 11,000 in December…”

“With factors like tariffs and AI preventing companies from hiring more workers, economists increasingly view the labor market’s challenges as more structural than cyclical, which would make rate cuts less effective to stimulate job growth.”

 

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