In April, U.S. job growth remained strong but slowed after President Donald Trump’s “Liberation Day” tariff announcement. The U.S. added 177,000 jobs, down from 228,000 in March, surpassing economists’ forecasts, with the unemployment rate steady at a low 4.2%, per the Bureau of Labor Statistics.
Trump’s April 2 tariff declaration caused a sharp stock market plunge, followed by a partial tariff suspension that spurred a record market surge. However, heightened tariffs on Chinese goods pushed the effective tariff rate to a century-high, according to the Yale Budget Lab.
Recent data showed a 0.3% annualized GDP decline in Q1 2025, a stark contrast to 2.4% growth in Q4 2024, amid tariff-related uncertainty. Despite this, the labor market has been resilient, averaging 170,000 jobs monthly in 2025, with inflation easing in March.
Recession concerns are growing, with Goldman Sachs and JPMorgan raising their recession odds to 45% and 60%, respectively. Fed Chair Jerome Powell noted the economy’s strength but warned of slowdown risks.
The Trump administration, acknowledging potential short-term economic pain, insists that new trade deals will ultimately benefit the U.S., with Trump criticizing past trade agreements and vowing reform.
WHAT YOU SHOULD KNOW
The April 2025 jobs report highlights the U.S. economy’s resilience amid significant policy-driven challenges.
Trump’s tariff strategy, while aimed at reshaping global trade, has introduced volatility that threatens growth, consumer confidence, and global stability.
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