The global economy experienced a downturn last week as investors grew increasingly wary of Donald Trump’s tariff policies. The uncertainty surrounding the US government’s actions had a significant impact on European markets, with Germany’s Dax index tumbling 1.9% and France’s Cac 40 falling 1.3%.
US employment figures revealed that 151,000 jobs were added to the economy in February, but this was below expectations. The unemployment rate remained steady at 4.1%. Despite the mixed results, economists believe the US labor market is “still in decent shape,” with private-sector hiring showing a healthy three-month average pace of 169,000.
However, the economic outlook remains uncertain due to the ongoing trade tensions between the US and its allies. Canada and Mexico were targeted by Trump’s tariffs, which have raised concerns about a potential recession in these countries. Economists warn that the chaotic implementation of US tariffs has created deep uncertainties for businesses and decision-makers.
The situation is further complicated by Trump’s threat of additional sanctions on Russia unless a peace deal with Ukraine is reached. The US president’s statement suggests that he may impose significant penalties, including banking sanctions and tariffs, which could have far-reaching consequences for the global economy.
As the market continues to navigate this uncertainty, economists predict that the March non-farm payroll data will include a “DOGE effect,” where the impact of government job cuts becomes apparent. While some experts believe the US labor market is resilient, others warn that the ongoing uncertainty around economic policy poses a downside risk to employment and growth in the coming months.
Key Takeaways:
* European markets have slumped due to US tariff uncertainty
* US employment figures revealed 151,000 jobs added, but below expectations
* Economists believe the US labor market is “still in decent shape”
* Ongoing trade tensions pose a risk of recession in Canada and Mexico
* Trump’s threat of additional sanctions on Russia adds to economic uncertainty
Source: https://www.theguardian.com/business/live/2025/mar/07/china-imports-trade-war-fears-market-selloff-us-jobs-payroll-business-live-news