August 1, 2025: Markets slump on tariffs and jobs data as Trump fires labor bureau statistics chief | CNN Business

Markets slump on tariffs and jobs data as Trump fires labor bureau statistics chief

tariffs 16x9.jpg
Here are the tariffs different countries will face
01:06 • Source: CNN
01:06

What we covered here

• Markets rattled: US stocks were battered by a sell-off today as Wall Street reckoned with President Donald Trump’s tariff regime. Late yesterday, the White House unveiled a new trade policy starting August 7 that affects virtually every nation, cementing a break from decades of free trade and signaling a new protectionist era.

• Jobs official fired: Trump this afternoon fired Dr. Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, whom he accused, without evidence, of manipulating the monthly jobs reports for “political purposes.” US job growth stalled in July, with just 73,000 jobs added, while May and June totals were revised down by a combined 258,000.

• Fed changes: Meanwhile, a member of the Federal Reserve’s Board of Governors announced she is resigning several months before the end of her term, allowing Trump to name a replacement sooner than expected.

113 Posts

Our live coverage of tariffs and the July jobs report has ended. Scroll through the posts below to read about today’s developments.

Business economists slam the firing of Bureau of Labor Statistics commissioner

The National Association for Business Economics slammed President Donald Trump’s firing of Bureau of Labor Statistics Commissioner Erika McEntarfer “and the unfounded accusations leveled against the work of the agency” in a statement Friday.

Trump claimed the bureau manipulated monthly job reports for “political purposes” after a disappointing July jobs report, which also revised down sharply numbers for the past two months. Trump did not show evidence to support those claims.

“This unprecedented attack on the U.S. statistical system threatens the long-standing credibility of our economic data infrastructure,” the statement read.

The organization said business leaders and policymakers depend on “reliable, impartial economic data” to make important decisions. And the gold standard for those economic statistics came from the US, the statement said.

Catch up on all the details after Trump fired the head of the Bureau of Labor Statistics today

Politicians and experts are reacting this evening after President Donald Trump fired Dr. Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, after accusing her, without evidence, of manipulating the monthly jobs reports for “political purposes.”

It followed the release of the monthly US unemployment report in the morning that showed job growth had stalled in July.

Here’s what we know so far:

  • What the report said: The Bureau of Labor Statistics’ labor report showed that the US economy added only 73,000 jobs in July, far below expectations. It also sharply revised down the employment growth that had been previously reported in May and June – by a combined 258,000 jobs.
  • What is the BLS: It’s a nonpartisan agency, and businesses and government officials rely on the accuracy of its data to make determinations about investment, hiring, spending and all sorts of key decisions.
  • Who is in charge now: Deputy commissioner William Wiatrowski will serve as acting commissioner, Secretary of Labor Lori Chavez-DeRemer announced. Chavez-DeRemer said she supported Trump’s decision to fire McEntarfer.
  • What Trump said: Trump repeatedly referred to jobs reports before the November election, which he claimed were manipulated to boost his opponent, Vice President Kamala Harris. He didn’t offer any evidence to support his claims and said, “We need people that we can trust.” The White House also said McEntarfer’s tenure “eroded public trust” in the BLS.
  • Key reactions: McEntarfer’s predecessors, William Beach and Erica Groshen, as well as Paul Schroeder, head of the Council of Professional Associations on Federal Statistics, called on Congress to investigate her removal. Keith Hall, a former BLS commissioner, said it would be “essentially impossible to juggle the numbers without being found out very quickly.” The National Association for Business Economics also slammed Trump’s decision.
  • Senate leaders: Senate Democratic Leader Chuck Schumer said the president should “start governing like a leader, not like someone who imitates authoritarian leaders.” Senate Majority Leader John Thune said there is already a “lack of trust” in labor statistics, though he noted, “I haven’t had a chance to hear what the rationale or explanation” was for the firing.
  • Other news: A member of the Federal Reserve’s Board of Governors, Adriana Kugler, announced he resignation today. Trump said, without evidence, her decision to step down was because she disagreed with Federal Reserve Chair Jerome Powell over interest rates. The president also called for Powell to resign.

CNN’s Bryan Mena, Kit Maher, Veronica Stracqualursi, Ramishah Maruf, Jeanne Sahadi, Tami Luhby, Morgan Rimmer and Elise Hammond contributed reporting.

Download the CNN app

Scan the QR code to download the CNN app on Google Play.

Scan the QR code to download the CNN app from Google Play.

Download the CNN app

Scan the QR code to download the CNN app from the Apple Store.

Scan the QR code to download the CNN app from the Apple Store.