Episode Overview

Podcast: Your Money Minute by CNBC
Episode: Are Tariffs Putting People Out Of Work?
Air Date: October 2, 2025
Host: Jessica Ettinger

This episode explores how recent tariffs may be impacting the U.S. labor market, with a particular focus on whether increased trade barriers and associated costs are leading businesses to cut jobs rather than pass higher prices on to consumers. Insights are provided through soundbites from financial leaders, providing context and analysis on current employment and trade dynamics.

Key Discussion Points & Insights

The Labor Market Weakening

• Jessica Ettinger (00:00): Opens the episode emphasizing reports of a weakening labor market, raising concerns that tariffs could be a contributing factor to job losses among Americans.

  “The labor market is getting weaker and some believe it’s the tariffs that may be putting Americans out of work.”

How Companies Are Reacting to Tariffs

• Gary Cohn, Former Goldman Sachs President & National Economic Council Director (00:12, 00:19):

  • Companies Focus on Labor Costs: Businesses are actively looking for ways to maintain profitability amidst higher tariff costs. Because many are reluctant or unable to pass those costs directly to consumers through price increases, they are instead lowering labor expenses, often meaning layoffs or reduced hiring.
  • Unexpected Squeeze on Labor: Cohn admits that this reaction—reducing labor costs rather than increasing consumer prices—was unexpected among leading economists.

  “Companies are trying to maximize their returns by minimizing their labor cost, and I think that’s going on.” (00:12, Gary Cohn)

  “Because they’re not passing price along and they’re fighting price with cutting down labor costs. We haven’t really seen this before. And by the way, I don’t think there’s any of us that would have predicted that if you raise tariffs and you increase input costs and you can’t increase prices to the end consumer, that the piece that gets squeezed out in the middle is labor cost.” (00:34, Gary Cohn)

Tariffs as a Hidden Tax on Americans

• Ed Yardeni, Yardeni Research (01:02):

  • Tariffs are a Tax: Yardeni underscores that tariffs amount to a significant tax, mainly affecting American importers directly. The importers then face a choice: absorb those costs, raise prices (if possible), or reduce labor expenses.
  • Consequences for Employment: If costs cannot be passed to consumers, profit margins are hurt and companies may resort to job cuts to offset the financial impact.

  “At the end of the day, this is a tax. It’s a massive tax and it’s hitting Americans. The reality is the importers are going to pay it and then they have to decide whether they’re going to share the pain with consumers. If they can, they will. If they can’t, it’s going to hurt their profit margins and then they cut back on employment.” (01:02, Ed Yardeni)

Notable Quotes & Memorable Moments

• Gary Cohn on Unanticipated Effects:

  “We haven’t really seen this before... I don’t think there’s any of us that would have predicted that... the piece that gets squeezed out in the middle is labor cost.” (00:34)

• Ed Yardeni on Who Bears the Cost:

  “This is a tax. It’s a massive tax and it’s hitting Americans.” (01:02)

Timestamps for Important Segments

• 00:00 – Jessica Ettinger frames the labor market and tariff question
• 00:12 – 00:34 – Gary Cohn explains how companies are responding to higher input costs due to tariffs
• 01:02 – Ed Yardeni contextualizes tariffs as a tax and discusses the downstream effects on employment

Summary

This concise episode draws a direct connection between rising tariffs and job losses, highlighting the roles of company decision-making and economic pressure points. Rather than passing on increased costs to consumers, businesses facing tougher international trade conditions are increasingly adopting job cuts as their solution. Both Gary Cohn and Ed Yardeni agree that tariffs are functioning as a tax on Americans, with the labor force absorbing much of the financial burden. For listeners interested in how macroeconomic policy translates into personal finance and employment prospects, this episode offers a timely, data-informed perspective.