Jobs report set to offer gauge of economic health amid Trump’s tariffs

(NEW YORK) — Hiring data to be released on Friday will offer a gauge of the nation’s economic health, just a day after President Donald Trump’s sweeping new tariffs triggered a major stock selloff.

The jobs report, which details employer activity in March, is set to provide a snapshot of staff cuts imposed by the federal government last month amid cost-cutting efforts undertaken by the Department of Government Efficiency.

The fresh data may also offer clues about possible fallout from a previous round of tariffs imposed on Mexico, Canada and China at the outset of March.

Economists expect the U.S. to have added 140,000 jobs in March. That figure would mark a slight slowdown from hiring in the previous month, but it would still amount to solid job growth.

Despite escalating trade tensions and market turbulence since Trump took office in January, the economy remains in solid shape by several key measures.

The unemployment rate stands at a historically low level. Meanwhile, inflation sits well below a peak attained in 2022, though price increases register nearly a percentage point higher than the Fed’s goal of 2%.

“The economy is strong,” Fed Chair Jerome Powell said at a press conference in Washington, D.C., last month.

Tariffs announced earlier this week, however, threaten to derail hiring and worsen inflation, multiple analysts previously told ABC News.

The far-reaching levies increase the likelihood of a recession by driving up prices, sapping consumer spending, slowing business activity and risking layoffs, they said.

The White House plans to slap a 10% tax on all imported products and place additional duties on items from some of the largest U.S. trading partners, including China and the European Union.

“​​These policies, if sustained, would likely push the U.S. and global economy into recession this year,” J.P. Morgan said in a note to clients after the tariff announcement.

“Recession risks will likely rise,” Deutsche Bank added.

U.S. stocks plunged on Thursday in the first trading session after Trump unveiled the new tariffs.

The Dow Jones Industrial Average plummeted 1,679 points, or nearly 4%, while the tech-heavy Nasdaq declined almost 6%.

The S&P 500 tumbled 4.8%, marking its worst trading day since 2020.