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How Trump's tariffs could impact the labor market

1. Goldman Sachs reports Trump's tariffs may decrease overall U.S. employment. 2. Manufacturing jobs could increase by about 100,000 despite tariff downsides. 3. Higher input costs are expected to reduce jobs by approximately 500,000. 4. A 15pp tariff increase may lead to recession fears and lower consumer sentiment. 5. Goldman forecasts a 45% chance of recession by 2025 with 0.5% GDP growth.

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FAQ

Why Bearish?

The expected reduction in employment and potential recession may negatively affect market confidence, similar to past events where tariff announcements led to stock market declines.

How important is it?

The implications of tariffs on employment and recession risks are critical for S&P 500 companies, especially in consumer-driven sectors.

Why Short Term?

Near-term market reactions may be influenced by immediate employment impacts and consumer sentiment, as seen during previous economic downturn announcements.

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