Trump’s tariffs squeeze jobs as US unemployment climbs in 2025
Uncertainty over trade policies under former US President Donald Trump has indeed weighed on businesses and the job market in 2025. Companies are cutting costs, pausing hiring, and even laying off workers as tariffs disrupt investment plans and profits. The economic strain is now showing in rising unemployment and weaker job growth.
Tariffs introduced during Trump’s presidency have squeezed company profits, making some investments unprofitable. Many businesses have indeed absorbed the extra costs to prevent price hikes for consumers, but this approach may shift depending on an upcoming Supreme Court ruling.
Customers have also pulled back, reducing new orders as they wait for clarity on trade rules. The hesitation has forced firms to delay expansion plans or cut jobs, pushing the unemployment rate up by 0.4 percentage points to 4.4%.
Job creation has slowed sharply, with average monthly growth in 2025 hitting the lowest level in decades—outside of recession periods. Despite Trump’s tariff adjustments, the labour market has not seen the promised boost, leaving many workers and employers in a difficult position.
The combination of higher tariffs, weaker demand, and hiring freezes has left the US economy under pressure. With unemployment rising and job growth at historic lows, businesses and workers are now looking for stability. The outcome of the Supreme Court’s decision on tariffs could determine whether companies continue absorbing costs or pass them on to consumers.
