Trump Dismisses Economic Data Head Amid Tariff Turmoil

Mon Aug 04 2025 08:40:36 GMT+0300 (Eastern European Summer Time)
Trump Dismisses Economic Data Head Amid Tariff Turmoil

President Trump fires BLS chief Erika McEntarfer after disappointing job figures fuel concerns over his tariff policies.


In a controversial move, President Donald Trump has dismissed Erika McEntarfer, the commissioner of the Bureau of Labor Statistics (BLS), just hours after the agency reported unexpectedly low job gains, intensifying fears surrounding his administration's trade strategy.

Trump's decision to fire McEntarfer has triggered accusations of politicizing economic statistics, particularly since he publicly accused her of manipulating job data to tarnish the Republican image. On social media, he claimed the reported job figures were "RIGGED" against him. Following the release of BLS data indicating only 73,000 new jobs added in July—far below the predicted 109,000—Trump's trade policy faced renewed scrutiny.

Democratic Senate Leader Chuck Schumer criticized Trump's leadership, claiming he was "shooting the messenger" for unfavorable statistics. The move comes at a turbulent time for U.S. markets, which are reacting negatively to Trump's continued push to raise tariffs on imports, exacerbating concerns about their effect on job growth and economic stability. The BLS report was notable not only for the low job additions but also for the downward revision of previous months' employment figures by a significant 250,000 jobs—the worst revision since 1979, excluding the pandemic years.

Economic experts have raised alarms about the ramifications of Trump's persistent tariff strategies, arguing they are detrimental to the labor sector. Heather Long, chief economist at the Navy Federal Credit Union, stated, "the labor market is deteriorating quickly," attributing this to the uncertainty surrounding Trump's tariffs. Despite these concerns, Trump maintains that higher tariffs will boost American manufacturing and rectify global trade imbalances.

As backlash grew, former Treasury Secretary Larry Summers condemned the firing, suggesting it parallels authoritarian practices when government officials are dismissed over undesirable data. Friends of BLS, a group of former agency leaders, echoed this sentiment, warning that politicizing economic data erodes public trust in official statistics.

Despite the controversy, McEntarfer, who held the position since her nomination by Biden, described her tenure as "the honor of my life." The Labor Department has appointed deputy commissioner William Wiatrowski to take over interim responsibilities.

Following McEntarfer's ousting, analysts speculate that the labor data raises critical questions about small businesses’ adaptability to tariffs, as they traditionally react slower in surveys. Trump also renewed critiques of Federal Reserve Chairman Jerome Powell over interest rates, demanding reductions to stimulate growth as labor indicators falter.

In the wake of the jobs report, Trump also announced the resignation of a Federal Reserve rate-setting committee member, paving the way for new appointments. Trump's tariff increases—ranging from 10% to 50%—are likely to escalate market tensions, with indexes already trading around historical highs prior to the latest announcements. Trump continues to assert that the economy is thriving under his leadership, despite the troubling employment figures and escalating concerns over trade policies.

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