For three years, the U.S. economy has remained resilient despite challenges such as inflation, high interest rates, and political instability. Key supportive factors have included strong consumer spending, a robust stock market, and healthy financial positions for households and businesses. However, with the imposition of new tariffs, which may disrupt the job market, concerns arise regarding future economic growth and employment. Analysts predict that rising prices from tariffs will force employers to reduce hiring and potentially lead to layoffs, jeopardizing economic stability further.
The sweeping tariffs that Mr. Trump announced on Wednesday could shatter what had arguably been the economy's final source of support, the strong job market.
If the economy isn't growing as fast, or it isn't growing at all, you don't need as many workers, Ms. House said.
The strength of the consumer is coming down to the jobs market, said Sarah House, an economist at Wells Fargo.
Economists say tariffs will raise prices for consumers and businesses, leading employers to pull back on hiring and potentially lay off workers.
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