Bad jobs report raises new alarms among Republicans over Trump’s tariff policies
by Alexander Bolton -
Republican lawmakers are expressing alarm and uncertainty over the strength of the U.S. economy after the Labor Department reported Tuesday that the nation had created nearly 1 million fewer jobs from March 2024 to March 2025.
While the data mostly falls during former President Biden’s administration, the report offers further evidence the labor market is struggling. The monthly jobs report on Friday showed the unemployment rate, though still low, ticked up to 4.3 percent as the economy added only 22,000 jobs, according to the Bureau of Labor Statistics (BLS).
Many Republicans view President Trump’s global trade war as the biggest reason for weaker-than-expected jobs data, noting that tariffs have increased prices, stifled consumer demand and spooked employers and investors.
While the major stock market indices have reached record highs, Republicans on Capitol Hill worry that doesn’t reflect the economic reality experienced by many Americans.
And they fret that the economic picture could worsen over the next six months heading into the midterm elections.
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“My take is that we’re in rough spot. The jobs numbers are low,” said Rep. Don Bacon (R-Neb.). “If you look at industrial jobs, if you look at the farm economy right now — the farm economy is looking pretty bleak.”
“I don’t see where tariffs have helped us yet; I don’t see a lot of corn and soybeans being bought,” he said.
Bacon, who represents a swing district in Nebraska, doesn’t plan to run for a sixth term and warned that a slumping economy could pose a major political problem for Republicans in the 2026 midterms.
“The Clinton administration said it’s the economy, stupid,” he said, arguing that inflation under Biden was the biggest reason Trump won in 2024.
“The economy is always the ace,” he said.
Other Republicans on Tuesday voiced similar views that the strength of the economy will be the biggest issue in 2026 and that it’s struggling because of widespread uncertainty created by Trump’s trade policies.
“There’s still so much uncertainty,” said Sen. Jerry Moran (R-Kan.). “The economy could be better than it is.”
“Businesses are waiting to see what happens, and therefore, there’s less job growth than there otherwise would be,” he said.
Moran said manufacturers in his state are pointing to tariffs as a major reason it’s getting increasingly expensive to do business.
“My conversations at home in August, at least in the manufacturing business sector, were about the difficulties that tariffs were making and increasing the cost of production and keeping them from buying new equipment in the manufacturing process,” he said.
“To me, that translates into tariffs are a challenge for many businesses, particularly manufacturers,” he said.
Tuesday’s BLS report provided revised data showing the U.S. economy added 911,000 fewer jobs from the end of March 2024 through March 2025 than previously reported. The report indicated the economy added only 850,000 jobs during that period.
The disappointing report came out several weeks after Trump fired BLS Commissioner Erika McEntarfer after the agency reported employers added only 73,000 new jobs in July and revised down the number of jobs created in May and June by 258,000.
On Friday, the BLS also revised its data for June to show that employment dropped by 13,000 jobs that month, marking the first time the economy suffered a net loss of jobs since 2020.
JPMorgan Chase CEO Jamie Dimon said the latest jobs report from the Labor Department shows the economy is slowing.
“I think the economy is weakening,” Dimon told CNBC in an interview. “Whether it’s on the way to a recession or just weakening, I don’t know.”
Mark Zandi, the chief economist at Moody’s Analytics, on Friday declared the country has entered a “jobs recession.”
“The goods side of the economy, including manufacturing, mining and construction, is losing a significant number of jobs, as is the federal government,” he posted on the social platform X.
“Only healthcare and hospitality are adding to payrolls. It’s not a full-blown recession, as GDP, incomes, and profits are still slowly growing. But for how much longer, if the economy continues losing jobs?” he asked.
Zandi says he expects inflation to grow from 2.7 percent to nearly 4 percent by this time next year as a result of higher tariffs.
He warned in an interview with Newsweek that rising prices and a surge in layoffs could lead to a “self-reinforcing vicious cycle.”
“The weakening in job growth goes to what feels like an economy-wide hiring freeze. Businesses are just very reluctant to add to their payrolls,” he said.
Senate Majority Leader John Thune (R-S.D.) on Tuesday acknowledged the economy will be a powerful issue in next year’s election, but he argued jobs and other economic indicators would pick up strength in the months ahead thanks to the enactment of Trump’s tax and spending package over the summer.
“I think people are economic voters, always,” he said when asked about Tuesday’s jobs report.
“But I think by the time the midterm elections roll around, a lot of the effects of the ‘one big, beautiful bill’ that we passed, you’re going to start seeing that,” he said.
“You’re going to see increased capital investment, you’re going to see new jobs created, better-paying jobs. And I think you’re going to see growth in the economy,” Thune added.
He said the jobs report reflects only “a moment in time.”
Sen. John Cornyn (R-Texas), who is up for reelection next year, said he hopes the Federal Reserve will help boost the economy by cutting interest rates.
“I know the economy’s awfully important. That’s one reason why I’m hopeful the Fed follows through on a cut to … the rate this month,” he said. “I think that will help. I think there’s a fair amount of uncertainty.”
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