NextFin news, Former Director of the National Economic Council and Chief Economic Adviser during President Donald Trump's first term, Gary Cohn, said on Tuesday, September 23, 2025, that tariffs are a significant factor causing difficulties for job seekers in the United States.
Speaking in an interview on "Face the Nation," Cohn explained that tariffs have increased input costs for companies, which in turn has pressured businesses to reduce their workforce or slow hiring. He noted that companies are struggling to pass on these higher costs to consumers through price increases, leading them to focus on cutting labor expenses to maintain profit margins.
Cohn highlighted a noticeable decline in job creation, with monthly new jobs dropping from over 100,000 to below 50,000. He described this as a sign of a degrading job market, influenced by the challenging economic environment shaped by tariffs and other factors.
He also pointed out a shift in corporate behavior since the pandemic. Initially, companies were reluctant to lose employees and thus retained more workers. However, the current trend shows firms adopting aggressive cost management strategies, allowing labor forces to shrink naturally through retirements and reduced hiring.
During the interview, Cohn also discussed the Federal Reserve's recent monetary policy moves, including interest rate cuts aimed at addressing economic conditions. He emphasized that the Fed is balancing its dual mandate of controlling inflation and promoting full employment amid these labor market changes.
The comments come amid ongoing debates about the impact of trade policies on the U.S. economy, with Cohn attributing a direct link between tariffs and the challenges faced by workers seeking employment.
Sources: MSN, SSBCrack News, Face the Nation interview on September 23, 2025.
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