An analysis by the Federal Reserve Bank of Kansas City found that tariffs may have slowed job growth in the U.S. economy in 2025 after higher import taxes were implemented. "Overall, our findings suggest — at least thus far — domestic firms might have added fewer jobs in response to tariffs, similar to the employment effects of the 2018 tariffs," the economists concluded. They also found that sectors with greater exposure to tariffs faced a greater decline in job growth, which they attributed to direct tariff effects. Additionally, the analysis estimated how many additional jobs might have been added to the economy without direct tariff effects suppressing hiring . TARIFFS HAVE SURPRISING EFFECT ON UNEMPLOYMENT AND INFLATION PATTERNS, FED ANALYSIS REVEALSThe Kansas City Fed economists estimated that the economy could've added 19,000 more jobs each month, on average, from January 2025 to August 2025 without tariff effects, though they noted that there is considerable uncertainty about that estimate.