Trump's Tariffs: Hiring Slowdown and Statistics Agency Head Fired

Tariffs imposed by Donald Trump appear to be negatively impacting the US labor market. In July, hiring was significantly lower than expected, and the government proceeded to fire the head of the Labor Department's Statistics Agency.

According to the data, employers in the US hired only 73,000 people last month, compared to estimates of 115,000. Revisions to previous months remove an additional 258,000 jobs from the total. The unemployment rate rose to 4.2%, with more Americans leaving the labor market.

Donald Trump's reaction was to demand the immediate dismissal of the head of the statistics agency, questioning the methodology of the revisions. At the same time, the government continues its policy of tariff increases, despite warnings about the burden on consumers and businesses.

Companies such as Walmart, Procter & Gamble, and Ford have already raised their prices due to tariffs. According to Goldman Sachs, most of the additional cost is passed on to the domestic market.

Pressure on the Federal Reserve to cut interest rates is increasing as the rate of new job creation declines. The average number of hires in 2025 is just 85,000 per month, compared to 400,000 in the period 2021-2023.