August 1, 2025

Good Friday evening. In this edition: Trump fires labor statistics chief after weak jobs report; and White House unveils updated global tariff rates.

• Plus, stocks, subs, public broadcasting, Smithsonian, Maxwell and Gaza.

U.S. Economy

President Trump fired the head of the Bureau of Labor Statistics, Erika McEntarfer, after her agency reported that job growth had slowed dramatically over the past three months.

• "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY," the president wrote on Truth Social.
  
  
• "She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes."

The latest jobs report showed the U.S. economy added 73,000 jobs in July, well below the relatively meager 100,000 jobs expected by economists.

• The unemployment rate also ticked up slightly to 4.2% from 4.1% in June.

More shockingly, the bureau also downwardly revised its numbers for May and June by a total of 258,000, an unusually high number.

• Taken together, only 35,000 jobs were added per month from May to July, which marks the lowest three-month period since 2010, excluding the pandemic.

In a follow-up post, the president said he believed the jobs report was manipulated to embarrass him.

• "In my opinion, today's Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad," he wrote. "But, the good news is, our Country is doing GREAT!"

Ms. McEntarfer, who holds a PhD in economics, spent the bulk of her career as an economic researcher at the U.S. Census Bureau with stints at the Treasury Department and Council of Economic Advisers.

• She was confirmed by the Senate to head the Bureau of Labor Statistics in January 2024 by a vote of 86–8.

Senate Minority Leader Chuck Schumer (D-NY) blasted the president's move, saying he should "start governing like a leader, not like someone who imitates authoritarian leaders."

• "What does a bad leader do when they get bad news? Shoot the messenger. That's just what happened with the head of the Bureau of Labor Statistics," he said in a floor speech.

President Trump also continued his criticism of Federal Reserve Chair Jerome Powell after the central bank left interest rates unchanged on Wednesday.

• "The Economy is BOOMING under 'TRUMP' despite a Fed that also plays games," he wrote. "Jerome 'Too Late' Powell should also be put 'out to pasture.'"

While Mr. Powell has no plans of leaving the central bank, Adriana Kugler, a Federal Reserve governor, announced she will step down next week, six months ahead of schedule.

• The impending opening gives President Trump an early chance to fill a seat on the board he has repeatedly lambasted.

The weak economic numbers have increased the likelihood the Fed will lower rates at its September meeting.

• Traders now see a nearly 90% chance of a rate cut, a stark reversal after Mr. Powell indicated Wednesday the central bank needed more information on the tariffs' impact on inflation before moving.

See the jobs report.

Tariffs

President Trump on Thursday night unveiled a modified slate of sweeping tariffs, seeking to reorient a global trade system he believes has harmed America.

• The new double-digit tariffs, most of which will go into effect on Aug. 7, provide more clarity for businesses following months of back-and-forth announcements and delays.

The new import taxes roughly fall into three categories, with some exceptions.

• Countries with which the U.S. has a trade surplus will be subjected to a minimum 10% base rate. This applies to most countries.
  
  
• Countries with which the U.S. has a trade deficit will face a 15% rate. This will apply to about 40 countries.
  
  
• The third group includes the countries that have struck bilateral deals for rates between 10% to 20% as well as those directly informed by the president of their new levies, ranging as high as 50% for Brazil.

President Trump also raised the tariffs on Canada, the U.S.'s second largest trading partner, from 25% to 35% for goods that are noncompliant with the U.S.–Mexico–Canada agreement.

• Mexico, the U.S.'s top trading partner, on the other hand, was given a 90-day extension on Thursday of its current 25% rate, giving the country more time to secure a new agreement with the U.S.

Under the new tariff regime, consumers will face an overall average effective tariff rate of 18.3%, the highest since 1934, according to the Yale Budget Lab.

• Before the start of President Trump's second term, the national tariff rate was around 2% to 3%.

The White House said the new tariffs would strengthen America's position in the global market after "decades of failed trade policy."

• "Today's Order underscores President Trump's commitment to take back America's economic sovereignty by addressing the many nonreciprocal trade relationships that impact foreign relations, threaten our economic and national security, and disadvantage American workers," the administration said in a memo.

Read the executive order and memo.

• Also see the country-specific rates through an interactive map created by the New York Times.

In other news…

• The stock market sunk on the news of the weak jobs report coupled with the new tariff rates. The S&P 500 closed down 1.6%, its worst day since May 21, while the tech-heavy Nasdaq Composite fell 2.2%, its biggest slide since April 21.
  
  

• President Trump ordered two nuclear submarines to be positioned "in the appropriate regions" after "highly provocative statements" from former Russian President Dmitry Medvedev about his country's nuclear capabilities. The president said he repositioned the submarines "just in case these foolish and inflammatory statements are more than just that."
  
  

• The Corporation for Public Broadcasting, which provides funding for PBS and NPR and its local stations, announced it will shut down operations on the heels of the recent rescissions bill that clawed back $1.1 billion in funding for the organization. Most employees will leave at the end of the fiscal year on Sept. 30 with a small transition team remaining through January.
  
  

• The Smithsonian Museum of American History removed references to President Trump's two impeachments in its exhibit "The American Presidency." Prior to its removal last month, a temporary descriptor of the impeachment trials and their outcomes were on display at the museum. The change came about as part of a content review that the institution agreed to undertake following pressure from the White House.
  
  

• Ghislaine Maxwell, the longtime Jeffrey Epstein associate, was relocated from a federal prison in Florida to a minimum-security prison camp in Texas. The move comes a week after she sat for interviews with Deputy Attorney General Todd Blanche, the president's former personal attorney. Ms. Maxwell is serving a 20-year sentence for sexually exploiting and abusing teenage girls.
  
  

• Rep. James Comer (R-KY), the chair of the Oversight Committee, postponed his panel's deposition with Ms. Maxwell until after Sept. 29, when the Supreme Court is expected to decide whether to review an appeal of her conviction. She was originally subpoenaed to testify on Aug. 11.
  
  

• Special Envoy Steve Witkoff and U.S. Ambassador to Israel Mike Huckabee spent more than five hours in Gaza, visiting aid centers run by the Gaza Humanitarian Foundation, which is backed by the U.S. and Israel. President Trump told Axios he was working on a plan to alleviate the dire humanitarian situation in the enclave. "We want to help people. We want to help them live. We want to get people fed," he said.

For your radar…

• The Senate plans to hold a rare Saturday session as it continues to process nominations and work towards passing some FY 2026 appropriations bills. Watch LIVE on C-SPAN2.

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