5 Ways Tariffs Might Put Your Job in Jeopardy
Written by
Martin Dasko
Edited by
Amen Oyiboke
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According to data gathered by CBS News, employers cut 12,000 manufacturing jobs in August, bringing the total number of jobs eliminated in the manufacturing industry in 2025 to 33,000. The research noted that the decline in employment was partly due to the new tariffs being introduced by President Trump.
The Urban Institute also noted that economic shocks from tariff-related ripple effects could impact American workers and employers as the economy enters challenging territory. Tariffs could slow down the overall economy, which could impact your job even if you’re not directly involved with an industry affected by them.
The harsh reality is that tariffs might affect Americans’ job security by creating economic uncertainty and driving up costs. We will explore five ways tariffs might put your job in jeopardy in the near future.
Overall Economic Activity May Slow Down
The biggest issue is that tariffs directly translate into higher costs across the board, hurting specific industries more and forcing them to cut jobs immediately. Milos Eric, a hospitality expert and the co-founder of OysterLink, shared that tariffs impact all areas of the hospitality business, from the imported food to the cost of equipment (ovens, mixers, and even furniture).
He added, “Consumers are affected too; they now have to pay more for groceries, gas, or housing, so they tend to spend less on eating out or travel.” With less money circulating in the economy, consumer spending drops, and this could hurt unrelated industries.
“Both rising costs and falling consumer purchasing power lead to business closures, hiring freezes, layoffs, and ultimately lost jobs in restaurants, hotels, and the many hospitality industry suppliers,” said Eric.
Urban noted that overall economic activity could slow due to tariffs. With weakening wage growth and higher costs of everyday items, consumers may spend much less, slowing the economy. The research also found that higher tariff costs are expected to have the greatest impact on low-wage workers. With tariffs leading to economic uncertainty, this will impact business operations, supply chains, and overall strategic planning. Some analysts fear that the financial impact on businesses can be alarming.
Industries With Higher Costs Will Have To Cut Jobs
CNN reported that job growth in industries impacted by tariffs, such as manufacturing, construction, and transportation, declined as soon as the tariffs were introduced in the spring. With the August jobs report revealing that manufacturing employment declined four months in a row, it’s clear that employers are forced to cut jobs due to higher costs.
The research from Urban also found that exporting businesses may face pressures from global partners and have to deal with retaliatory tariffs. As employers become less profitable, layoffs and closures will follow.
Unemployment Will Rise for Various Reasons
The Yale Budget Lab estimated that tariffs could increase unemployment by 0.7% in 2026 and that payroll employment would be 500,000 lower at the end of 2025. Unemployment could rise due to higher manufacturing costs, overall economic uncertainty, and a decline in consumer confidence. While industries that aren’t exposed to tariffs wouldn’t be hit first, the ripple could impact everyone as consumer spending drops.
Another consideration is that impacted workers who lose their jobs initially may face long-term financial challenges. When someone loses their job in manufacturing, they have less money to spend on housing, travel, and other discretionary purchases. When they stop spending money, overall consumer spending declines, which could lead to job cuts in unrelated fields.
It’s important to emphasize that the most recent jobs report wasn’t released because of the government shutdown. Still, data from the ADP private-sector report showed that the economy lost 32,000 jobs in September. While official data isn’t available, it appears unemployment is rising due to various issues related to tariffs.
Policy Uncertainty Will Hurt Hiring and Planning
The complicated process for announcing tariffs and the overall uncertainty could hurt business operations. Urban pointed out that companies could wait to move forward on significant investments in hiring and planning until the situation clears up. It’s challenging to forecast spending and revenue targets when tariff announcements appear to come out of nowhere. Some companies and industries may also cut jobs or hold back on wage growth until the situation with tariffs is resolved.
Ongoing Legal Challenges
CBS News cited experts who stated that the ongoing legal challenges to the tariffs are causing uncertainty in the manufacturing industry. This means that companies could end up cutting more jobs as they struggle to plan for the future. The combination of trade policy uncertainty and legal issues could be enough for potential job losses across various industries.
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