Signs of trouble in the U.S. economy: Where are all the jobs?
CBC
Job growth in the U.S. has weakened. The unemployment rate has climbed to highs not seen in years and wage growth has sputtered. Crucially, the manufacturing sector has cut jobs for seven straight months in spite of the tariffs that were supposed to bolster American manufacturing jobs.
“What we are doing is not working,” said Justin Wolfers, professor of economics at the University of Michigan and a senior fellow at the Brookings Institution.
Wolfers says that since Trump imposed tariffs on April 1, the manufacturing sector has lost 67,000 jobs. And he says the reason is clear.
"The president put in place a set of policies that were substantially damaging to the United States. And the United States economy has done terribly. So that part seems pretty straightforward to me," said Wolfers.
Canadian steel and aluminum are subject to a 50 per cent tariff. So any American company using that steel to make products has either had to find a new source, pay the tariff or make do with imports stockpiled before the tariffs kicked in.
Automakers have complained that the tariff regime will cost them billions of dollars.
The debate over the economic impact of Trump’s tariffs has been raging since the election last November.
Critics say the tariffs are a tax on imports, paid by American companies and would eventually slow economic growth.
The Trump administration has repeatedly dismissed that argument. It sometimes says the tariffs are paid by foreign countries (even while admitting the bill is eventually paid by American companies). But it has steadfastly claimed the president’s economic policies would lead to a golden age for American workers.
“Put simply, President Trump’s One Big Beautiful Bill will unleash our economy and deliver a Blue-Collar BOOM,” wrote the White House in a news release in June.
Just last week, Trump was asked to grade the U.S. economy.
“A-plus,” he said.
“A-plus?” questioned Dasha Burns, host of the podcast The Conversation.
“A-plus-plus-plus-plus-plus,” said Trump.
