By PAUL WISEMAN and ANNE D'INNOCENZIO AP Business Writers
U.S. employers added a surprising 172,000 jobs in May as the labor market continued to show resilience in the face of rising costs from the Iran war. The Labor Department reported Friday that job growth was down slightly last month from a revised 179,000 in April. The unemployment rate stayed at a low 4.3%. The job market has been recovering this year from a miserable 2025, so far shrugging off higher energy prices and increased economic uncertainty since the United States and Israel attacked Iran in late February.
Prices for tomatoes are up 40% over the past year, the biggest increase tracked among products in the Consumer Price Index. Experts say the spike is the result of crop yields and two pillars of President Donald Trump's second term policies. The Iran war has spiked shipping costs. And Trump has slapped tariffs on tomatoes from Mexico, which grows most of America's supply. Outraged consumers are voicing their displeasure online, but the impact is most acute among businesses that rely on tomatoes as a key ingredient. Wayne Humphrey of Snarf's Sandwiches, which which operates dozens of stores in Colorado, Missouri and Texas, says the price hike will cost him $1.7 million this year.
When the Supreme Court killed his favorite tariffs in February, President Donald Trump rolled out temporary import taxes to replace them. But those stopgap levies expire in less than three months. Now the administration is scrambling to put more durable tariffs in place to keep revenue flowing into the U.S. Treasury and to shore up the president's protectionist wall around the American economy. Starting this week, the government will begin hearings in two investigations — one on countries that lag in enforcing bans on forced labor, another on overproduction — that will likely lead to a new round of U.S. tariffs.
By STEVEN SLOAN, JOSH BOAK and MARY CLARE JALONICK Associated Press
King Charles III has acknowledged "times of great uncertainty" while addressing the U.S. Congress. Charles on Tuesday marked the 250th anniversary of American independence from Britain and highlighted the enduring bonds between the two nations. Charles is only the second British monarch to speak to Congress, following Queen Elizabeth II in 1991. Charles' speech comes amid political turmoil, with tensions between President Trump and British Prime Minister Keir Starmer over the war in Iran. Trump and Charles met at the White House earlier on Tuesday. Charles and Queen Camilla will continue their U.S. trip with stops in New York City and Virginia.
The Iran war has stalled the world's economic momentum this year, likely pushing growth lower compared to 2025, the International Monetary Fund warned Tuesday. The IMF downgraded its forecast for global growth to 3.1% in 2026 from the 3.3% it had forecast back in January. The expected growth would mark a deceleration from a 3.4% expansion in 2025. Citing higher energy prices caused by the war, the IMF marked up its expectation for global inflation this year to 4.4% from 4.1% in 2025 and from the 3.8% it had forecast for this year in January.
By PAUL WISEMAN and ANNE D'INNOCENZIO AP Business Writers
American employers unexpectedly cut 92,000 jobs last month, a sign that the labor market remains under strain. The unemployment rate blipped up to 4.4%. The Labor Department reported Friday that hiring deteriorated from January, when companies, nonprofits and government agencies added a healthy 126,000 jobs. Economists had expected 60,000 new jobs in February. Revisions also cut 69,000 jobs from December and January payrolls. The surprisingly weak employment picture in February adds to the economic uncertainty over the war with Iran, which has caused oil prices to surge and saddled business and consumers with unforeseen costs.
By LINDSAY WHITEHURST and PAUL WISEMAN Associated Press
Some two dozen states are challenging President Donald Trump's new global tariffs in court. On Thursday, the states filed a lawsuit over import taxes he imposed after a stinging loss at the Supreme Court. Democratic attorneys general leading the suit argue that Trump is overstepping his power with planned 15% tariffs on much of the world. Trump has said the tariffs are essential to address trade deficits. He imposed duties under Section 122 of the Trade Act of 1974 after the Supreme Court struck down tariffs he imposed last year under an emergency powers law. The new suit argues that law was intended to be used only in specific, limited circumstances.
Oil prices jumped Tuesday for the second straight day and gas prices moved higher in the United States, underscoring the threat of rising inflation posed by the Iran war. Coming after nearly five years of elevated costs, even a modest pickup in prices could further sour many Americans on the economy and heighten the affordability concerns that have become a top political issue. A key issue, economists say, is how long the conflict lasts and whether key shipping routes, such a the Strait of Hormuz, at the mouth of the Persian Gulf, are closed. About one-fifth of the world's oil and natural gas is shipped through the Strait.
By CHRISTOPHER RUGABER and PAUL WISEMAN Associated Press Writers
President Donald Trump sought in his first State of the Union address to sell Americans on the idea of a booming economy, falling prices, and soaring jobs, yet he faces a skeptical public with a much gloomier view. Barely 12 hours before his speech, in fact, The Conference Board, a business research group, released its latest consumer confidence report. It showed that overall confidence in the economy remains historically low, and is barely above the level it plunged to in the depths of the COVID recession. Other polling has yielded similar results: Only 39% of Americans approve of Trump's economic leadership, according to the latest Associated Press-NORC Center for Public Affairs Research survey.
