FOR IMMEDIATE RELEASE
February 4, 2026
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ICYMI: Tariffs Drive Job Losses for Small Businesses and Manufacturers
Despite the Administration’s Promise of Manufacturing Surge, Manufacturers Shed Jobs
New economic data shows growing pressure from tariffs on small businesses and manufacturers. ADP’s January employment report showed private employers added just 22,000 jobs, well below expectations. Manufacturing led the slowdown with a loss of 8,000 jobs, while professional and business services continued to decline. Payrolls at companies with 20–49 employees fell in January to their lowest level since August 2022, underscoring the strain on smaller firms.
Since April, Trump has imposed across-the-board tariffs of 10%–50% on nearly all imports, with higher rates for dozens of countries and industries. The average tariff rate now tops 16.8%, the highest since 1935.
Yahoo Finance: Private payroll growth in January misses expectations as market awaits official jobs data
Manufacturing helped lead the slowdown with a drop of 8,000 jobs in January, according to ADP, less than one year out from President Trump’s sweeping tariffs and promises to restore positions to the sector.
Market Watch: ADP jobs report shows paltry 22,000 increase in private hiring. Sluggish labor market is not getting any better.
Businesses are still hesitant to hire because of uncertainty over U.S. tariffs. The duties have raised prices, hurt sales and raised questions about future demand.
U.S. News & World Report: US Private Payrolls Increase Modestly in January Amid Manufacturing Job Losses
The labor market has largely been in what economists call a “low-hire, low-fire” state, blamed on import tariffs and the rise of artificial intelligence.
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About Tariffs Cost US
Tariffs Cost US is a campaign dedicated to providing the public with reliable, comprehensive information about global trade and tariffs and their impact on both businesses and consumers. More information is available at tariffscostus.com.
