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Trump's escalating trade war with China is starting to hurt the US job market

Aug 14, 2019, 01:18 IST

President Donald Trump and China's President Xi Jinping meet in Beijing in November.REUTERS/Jonathan Ernst

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  • President Donald Trump's escalating trade war with China is starting to hurt the nation's job market, another sign that ongoing tensions over commerce may take a harsh toll on US economic health.
  • The Washington Post reported there's increased anxiety among business owners and corporate leaders over a trade war that has no end in sight - and there's early signs they're backing off hiring more workers.
  • One executive said he took down several job listings this summer after Trump announced he would impose tariffs to all remaining US imports from China.
  • Sung Won Sohn, an economics professor at Loyola Marymount University, told the Post it's a cautious time for businesses and they're being "careful about spending and hiring."
  • Visit Business Insider's homepage for more stories.

President Donald Trump's escalating trade war with China is starting to hurt the nation's job market, another sign that ongoing tensions over commerce may take a harsh toll on US economic health.

The Washington Post reported there's increased anxiety among business owners and corporate leaders over a trade war that has no end in sight - and there's early signs they're backing off hiring more workers.

One executive said he took down several job listings this summer after Trump announced he would impose tariffs on all remaining US imports from China on September 1.

Read more: It's been more than a year since the US-China trade war started. Here's a timeline of everything that's happened so far

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"It's the most frustrating time I've ever had running a business, and I've been doing this for 20 years," Win Cramer, chief executive of JLab Audio, told the Post.

Business investment declined in the second quarter of the year. And some corporate leaders cited Trump's tariffs and his volatile economic approach creating a current of uncertainty and forcing them to rethink their spending.

Sung Won Sohn, an economics professor at Loyola Marymount University, told the Post it's a cautious time for businesses and they're being "careful about spending and hiring."

Labor Department data shows 7.3 million job openings in June, a dip from a peak of 7.6 million openings in November 2018. Cutting back on hiring suggests there is widespread concern about continued economic growth among businesses.

CBS News reported that the retail industry - which is already experiencing record-high store closures - is bracing for more possible job cuts if the tariffs go into effect.

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The Trump administration announced on Tuesday it would delay a part of the planned tariffs on cell phones, laptops, and toys among other items until Dec. 15. The move spares consumers during the busy holiday season as the cost of those goods would likely rise with the additional tariffs.

Read more: The Trump administration delays a portion of planned China tariffs until December

There are other signs that the trade war is not achieving the results Trump has long sought. The New York Times reported that Trump's trade fights appears to be undercutting his own efforts to bring back jobs to the US.

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