The U.S. economy added a stronger-than-expected total of 228,000 jobs in March, a significant increase from February’s revised gains of 117,000, according to Bureau of Labor Statistics data released on Friday, April 4, 2025. The White House touted the jobs report, with press secretary Karoline Leavitt writing in an X post that “the President’s push to onshore jobs here in the United States is working.” However, U.S. stocks are set to plunge as markets remain focused on President Donald Trump’s trade war, which escalated after China retaliated against the United States.
The unemployment rate ticked higher to 4.2% from 4.1%, with economists having expected job growth to slow to 130,000 in March and for the unemployment rate to rise to 4.2%, according to FactSet. March’s report marks another solid month of job gains and a continuation of a historic growth of the labor market. The U.S. has now added jobs for 51 months in a row, marking the second-longest expansion on record, BLS data shows.
Yet, uncertainty looms over the economy as recent data indicate rising layoffs and economic instability amid significant policy shifts from the Trump administration. The federal workforce has seen job losses for two consecutive months, dropping 11,000 jobs in February and 1,000 jobs in March, according to BLS data. This comes at a time when Trump imposed a colossal set of new tariffs on America’s trading partners, causing ripple effects that could take time to manifest in job data.
As global markets react to these developments, stocks are already feeling the heat. The major U.S. stock indexes dropped sharply just minutes into trading on April 4, 2025, as Trump’s historic tariffs announcement and fresh retaliatory duties imposed by China sent shockwaves through the global economy. The S&P 500 fell more than 3%, deepening a decline that began in February, and is now down almost 15% from its peak.
In response to the economic fallout, Federal Reserve chairman Jerome Powell warned that Trump’s tariffs are “significantly larger than expected” and that the economic fallout, including higher inflation and slower growth, is likely as well. Powell stated that the Fed faces a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation. This comes as Trump continues to insist that his policies will “never change,” despite the significant market downturn.
Compounding these economic challenges, the Trump administration has initiated a special investigations team within the Departments of Justice and Education to enforce compliance with Trump’s executive order aimed at banning transgender women from participating in women’s and girls’ sports. Attorney General Pam Bondi emphasized that this collaborative effort aims to protect women’s rights in sports.
Meanwhile, the Senate is gearing up for a marathon “vote-a-rama” session on the Republican budget resolution, where lawmakers from both sides will offer and attempt to pass an unlimited number of amendments ahead of a final vote. Senate Minority Leader Chuck Schumer has voiced concerns over the GOP’s budget plan, labeling it “poison” and warning of its devastating consequences for the American people.
In a related political maneuver, Democratic National Committee Chair Ken Martin announced the launch of the “People’s Cabinet,” an initiative aimed at countering the Trump administration’s agenda by bringing together policy experts and lawmakers to provide accurate information and counterarguments.
As the political landscape shifts, California Governor Gavin Newsom is asking the state’s trading partners to exempt California’s products from retaliatory tariffs that could arise from Trump’s sweeping new tariffs. Newsom argues that California’s agricultural sector, which produces an estimated 80% of the world’s almonds, stands to lose significantly from the trade war.
In the tech sector, companies like Nintendo have announced a postponement of preorders for their new Switch 2 gaming console due to the uncertainty surrounding tariffs. The company stated that it will assess the potential impact of tariffs and evolving market conditions before proceeding with the launch.
As the situation develops, it remains to be seen how the economic landscape will evolve in the face of Trump’s trade policies and the global reactions they provoke. With tensions rising and markets fluctuating, the coming weeks will be critical in determining the trajectory of the U.S. economy and its labor market.
