Trump Administration in Panic as Harsh Jobs Report Links Job Losses to Trump's Tariffs

Recent data confirms that Donald Trumps tariffs are negatively affecting private-sector employment. According to a new report from payroll processor ADP, nearly 32,000 private jobs were lost in November, in stark contrast to analyst predictions of a 10,000-job gain. This marks a steep downturn from October, when businesses added 47,000 positions according to ADPs revised estimates.

Heather Long, chief economist at Navy Federal Credit Union, noted on X that larger companies continue to hire, while smaller firms with fewer than 50 employees are conducting layoffs. She added that small businesses have faced a difficult year due to tariffs and reduced spending among lower- and middle-income consumers.

The breakdown shows smaller businesses bore the brunt with 120,000 jobs lost, while medium-sized firms added 51,000 jobs and the largest companies added 39,000.

Officials from the Trump administration attribute the downturn to other factors, such as the recent government shutdown. Secretary of Commerce Howard Lutnik told CNBC that the drop in small business hiring is tied to federal payment delays rather than tariffs, suggesting that private-sector numbers will stabilize in the coming months.

However, broader economic indicators contradict this narrative. The Institute for Supply Managements Manufacturing Index reported a decline for the ninth consecutive month, signaling that tariffs are harming the sector Trump has claimed to strengthen. Additionally, major private companies, including wholesale retailer Costco, have filed lawsuits seeking refunds for tariffs they have paid.

Trump has repeatedly asserted that tariffs are paid by foreign countries and generate significant revenue, reducing the need for other taxes. Evidence shows this is inaccurate, with tariffs directly affecting businesses and consumers.

Overall, the data points to tariffs as a damaging factor for the U.S. economy and private-sector employment.

Author: Connor Blake