Employers cut 12,000 manufacturing jobs in August, totaling 33,000 in 2025. New tariffs introduced by President Trump contributed to the decline in employment. Economic shocks from tariff ripple effects could impact American workers and employers as the economy faces challenges, potentially leading to job cuts and economic uncertainty.
Tariffs are expected to lead to higher costs, affecting various industries and forcing immediate job cuts. Rising prices in imported goods and everyday items could decrease consumer spending, leading to business closures, hiring freezes, layoffs, and overall job loss in hospitality and related industries.
The Yale Budget Lab estimates that tariffs could increase unemployment by 0.7% in 2026, with payroll employment expected to be 500,000 lower by the end of 2025. Impacted workers may face long-term financial challenges, and industries not initially exposed to tariffs could still be affected as consumer spending drops.
Uncertainty surrounding tariffs and ongoing legal challenges are causing job losses in the manufacturing industry. Companies may struggle to plan for the future, leading to potential job losses across various industries. The combination of trade policy uncertainty and legal issues could contribute to more job cuts.
The August jobs report revealed declining job growth in industries affected by tariffs, leading to manufacturing employment dropping for four consecutive months. Employers are forced to cut jobs due to higher costs, and the overall economic impact of tariffs could lead to further layoffs and closures in exporting businesses.
The Urban Institute research found that higher tariff costs are expected to have the greatest impact on low-wage workers, slowing overall economic activity. With weakening wage growth and higher costs of everyday items, consumers may spend less, impacting businesses and supply chains. Economic uncertainty from tariffs could lead to alarming financial impacts on businesses.
Read more at Yahoo Finance: 5 Ways Tariffs Might Put Your Job in Jeopardy