Fact Check: Higher US import duties spark anxiety over economy and job market

Published June 26, 2025

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VERDICT

Partially True

# Fact Check: Higher US import duties spark anxiety over economy and job market ## What We Know The claim that higher US import duties are causing an...

Fact Check: Higher US import duties spark anxiety over economy and job market

What We Know

The claim that higher US import duties are causing anxiety over the economy and job market is supported by several reports and analyses. According to a report by the Congressional Budget Office, increased tariffs can lead to higher prices for consumers and reduced economic growth. The report indicates that tariffs can disrupt trade flows and create uncertainty in the market, which may negatively impact employment.

Furthermore, a Reuters article notes that job growth in the US slowed in April 2025, which was attributed to heightened economic uncertainty stemming from aggressive tariff policies. This suggests that businesses may be hesitant to hire or invest due to the unpredictability created by these tariffs.

On the other hand, a report from the New York Times highlights that despite the tariffs, the labor market remained relatively stable, with employers adding 177,000 jobs in April 2025. This indicates that while there is concern about the impact of tariffs, the immediate effects on job growth may not be as severe as feared.

Analysis

The evidence surrounding the impact of higher import duties on the economy and job market is mixed. The Congressional Budget Office provides a credible analysis of how tariffs can lead to increased prices and reduced economic activity. This source is reliable as it is a nonpartisan agency that provides objective economic forecasts and analyses.

The Reuters report is also credible, as it cites specific data regarding job growth and links it to tariff-induced uncertainty. However, it is important to note that while job growth slowed, the overall employment figures still showed a net increase, suggesting that the economy was not in a crisis state.

Conversely, the New York Times article presents a more optimistic view, indicating that the labor market remained strong despite the tariffs. This source is reputable and well-regarded for its journalistic standards, but it may downplay the potential long-term effects of tariffs on job security and economic stability.

Additionally, other sources, such as US Import Data and Davron, provide insights into how specific sectors are affected by tariffs, indicating that while some industries may suffer, others may benefit from reduced competition.

Conclusion

The claim that higher US import duties are sparking anxiety over the economy and job market is Partially True. While there is evidence of increased uncertainty and potential negative impacts on job growth due to tariffs, the overall labor market has shown resilience in the short term. The mixed evidence suggests that while tariffs create anxiety, their immediate effects may not be as dire as some reports indicate.

Sources

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