How Tariffs are Affecting Job Prospects for the Class of 2025

Now isn’t a good time to be entering the job market. Companies tend to hire more entry-level graduates when they are confident about the economy and their earnings prospects. That’s not currently the case, and President Donald Trump’s high import tariffs are at least partly to blame.

Key Takeaways

• Tariffs are taxes imposed by a government on imports, and they generally lead to higher prices and squeeze corporate profits.
• Trump’s tariff blitz has made business leaders nervous about the economic outlook, leading to layoffs and hiring freezes, particularly for entry-level jobs usually taken by graduates.
• Tariffs have the biggest impact on companies reliant on global trade, but are capable of slowing down the entire economy or pushing it into recession.
• Graduates can improve their chances by networking, gaining extra skills, interning, and broadening their job search.

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Tariffs and Their Economic Implications

Tariffs are taxes imposed by a government on imports. Shortly after taking office, President Trump, a long-term skeptic of global trade, began charging most of the rest of the world heavily to send goods to the U.S., arguing that it would represent a win for American-made goods and create jobs.

What Trump didn’t mention is how damaging tariffs can be to the economy. Many U.S. companies and consumers rely on foreign goods and materials. Finding U.S.-made equivalents is either impossible or considerably more expensive, resulting in higher costs for consumers, companies, or both. And it’s not just imports that are affected. Trading partners often retaliate with tariffs of their own, leading businesses that ship goods abroad to also get punished.

For many companies, this situation is a nightmare. If they charge customers more to offset the taxes, it could dent demand. And if they don’t, their profits will fall.

In this scenario, the first response is usually to cut costs as much as possible. That inevitably means recruitment freezes, especially on entry-level graduate positions that require training and more resources.

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Which Companies Are Most Affected?

Initially, tariffs have the biggest impact on companies reliant on global trade. Sectors caught in the crossfire include manufacturers of autos, electronics, machinery, and pharmaceuticals, retailers, and agriculture and food processors.

Unfortunately, it doesn’t stop there. Higher running costs for international companies, which are among the nation’s biggest employers, are capable of weighing on the rest of the economy. If they start laying off staff, hiking prices, or both, it will reduce spending, slow economic growth, and steadily impact everyone.

Much of corporate America has yet to feel the sting of tariffs. However, it anticipates it coming and is adjusting its budgets accordingly in preparation.

How New Graduates Can Improve Their Chances

Finding a job in a year when graduate jobs are in shorter supply requires doing more to stand out and make yourself more employable.

Networking

Consider reaching out to alumni from your college and attending events related to your profession. Getting your name out there and making a good impression could potentially help you jump the queue. Just make sure you don’t overdo it and annoy potential allies.

Develop Complementary Skills

Mastering relevant technologies or communication can help candidates gain an edge and doesn’t necessarily have to break the bank or take up too much of your time.

Interning

If you can afford it, working somewhere prestigious for free could help you make new contacts and add some much-needed experience to your resume.

Broadening Your Job Search

If you aren’t able to find your dream job, consider broadening your search. You could look at related industries or maybe even stopgaps until the current bout of economic uncertainty passes and hiring picks up.

The Bottom Line

People graduating this year can be forgiven for feeling demoralized. Artificial intelligence was already killing many entry-level jobs, and now economic uncertainty, one of the labor market’s biggest nemeses, is making a comeback.

Companies are worried about the impact of Trump’s tariffs on consumer spending and profitability, and are responding by hiring fewer graduates. This situation could go on for a while and requires job seekers to either do more to stand out or be willing to compromise.