U.S. Labor Markets Decline Due to New Tariffs and Weak Employment Data

• The U.S. labor markets have fallen due to new tariffs and weak employment data.
• The number of new jobs in July increased by only 73,000.
• The likelihood of a decrease in the Federal Reserve's interest rates rose to 86%.

The U.S. labor markets experienced significant losses on Friday, September 1, 2025, due to new tariffs imposed by President Donald Trump, as well as weak employment data. The Dow Jones index fell by 542.40 points, or 1.23%, closing at 43,588.58.

According to data from the Bureau of Labor Statistics, in July the number of new jobs increased by only 73,000, which is significantly lower than the projected 100,000. Furthermore, the data for the previous month was substantially revised: June's figure was revised down to 14,000 from 147,000, and May's to 19,000 from 125,000.

Such results have raised concerns about worsening economic conditions and increased the likelihood that the Federal Reserve may lower interest rates in the near future. As of Friday, the likelihood of a rate cut in September stood at approximately 86%. This was a consequence of the market reacting to unexpectedly weak employment data.

In addition, Trump imposed new tariffs on imports, raising rates for Canada to 35%, and for other countries to 41%. This has also added pressure to the markets, as investors are concerned about the negative impacts on the economy.

The UK labor market also experienced losses, with the FTSE 100 index falling by 64.23 points, or 0.7%. Meanwhile, shares of Amazon fell by 8% after it reported disappointing growth figures in the segment of cloud services, which also contributed to the overall negative sentiment in the market.

Tags: USA/Economy