Here’s a full breakdown of the most recent labor market developments in the U.S., showing how Trump’s intensifying trade war and tariffs are impacting jobs — and how markets and policymakers are responding:

📉 U.S. Job Growth Slows Sharply in July

• In July 2025, only 73,000 jobs were added, well below the expected 110,000–115,000 range (Reuters).
• May and June data were revised downward by a combined 258,000 jobs, revealing previous estimates were overly optimistic (Reuters).
• The unemployment rate rose to 4.2%, up from 4.1% in June (Reuters).

🧾 What’s Driving the Weak Hiring?

• Business caution amid tariffs: Broad new import duties (10%–41%) imposed on dozens of countries have higher costs and uncertainty, causing employers to delay hiring (The Guardian).
• Labor supply constraints: Stricter immigration controls and demographic shifts have shrunk the workforce, dragging down potential job growth (Reuters).
• Sectoral vulnerability: Countervailing effects through manufacturing, construction, and federal hiring, while health care was the only real bright spot (AP News).

📈 Market & Policy Responses

• Stock market crashes: July jobs disappointment plus tariff escalation triggered a downturn—Dow fell ~1.4%, S&P ~1.7%, Nasdaq ~2.3% (Reuters).
• Fed reaction shifts: Short-term borrowing costs declined, and rate-cut bets surged to ~80% likelihood in September, according to CME FedWatch (Reuters).

🦠 Political Fallout & Institutions Under Pressure

• President Trump fired the Bureau of Labor Statistics commissioner, Erika McEntarfer, claiming the report was politically biased—sparking major concern over politicizing economic data (Reuters).
• Federal Reserve governance shift: Fed Governor Adriana Kugler announced an early resignation effective August 8, giving Trump another appointment opportunity amid rate cut disputes (Reuters).

📊 Snapshot Summary

Let me know if you’d like a breakdown by industry (e.g. tech, manufacturing), region, or specific Fed commentary.

• Reuters
• Axios
• The Guardian