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WASHINGTON (Reuters) -The U.S. economy added far more jobs than expected in March, but President Donald Trump's sweeping import tariffs could test the labor market's resilience in the months ahead amid sagging business confidence and a stock market selloff. The Labor Department's closely watched employment report on Friday suggested steady momentum in the economy before the Trump administration's reciprocal duties announced this week, which unleashed threats of retaliation and rattled global financial markets. "This is a drop of good news in a sea of uncertainty, a footnote given the barrage of activities this week," said Olu Sonola, head of U.S. economic research at Fitch Ratings.

China slapped additional duties of 34% on U.S. goods, set to go into effect April 10. U.S. President Donald Trump on Wednesday announced 34% duties on imports from China along with a 10% baseline tariff on most goods flowing into the U.S., triggering a massive market meltdown on Thursday. Shares of Tesla and Apple - among companies with a large exposure to China - were down 8% and 4%, respectively.

Trump's tariff increase could cost U.S. households $700 billion, the largest de facto tax hike since LBJ needed to finance the war in Vietnam.

News of the day for April 4, 2025

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Global money market funds saw massive inflows in the week ending April 2 as investors grew cautious over U.S. President Donald Trump's aggressive trade policies, which are heightening fears of a global slowdown and prompting some economists to revise their recession projections upward. Money market funds, often seen as safe havens during times of economic distress, attracted $30.26 billion in inflows during the week, as Trump introduced sweeping reciprocal tariffs on trading partners, intensifying a trade war and amplifying fears of a global economic slowdown.

Credit ratings giant S&P Global has said it is reviewing all its macro economic forecasts in the wake of Donald Trump's sweeping world trade tariffs this week, a move likely to fuel concerns of a renewed wave of credit score downgrades. The firm, whose ratings judge the creditworthiness of thousands of companies and more than 130 countries, said the scope and size of U.S. President Trump's new tariffs had exceeded most expectations.