The National Oceanic and Atmospheric Administration (NOAA) has informed its staff via email about the layoff of over 1,000 employees, aligning with the Trump administration’s initiatives to reduce the federal workforce.
This agency, which encompasses the National Weather Service, is tasked with weather forecasting, monitoring oceanic and atmospheric conditions, and conducting deep-sea exploration, among various other duties. NOAA’s global workforce is approximately 12,000, and it has already laid off more than 880 employees within the last two weeks.
This decision comes during a time of significant economic turbulence, following the implementation of President Donald Trump’s extensive tariffs on imported steel and aluminum that took effect on Wednesday. These tariffs are part of the administration’s push for improved global trade agreements and have caused upheaval in financial markets, heightening concerns of inflation and a potential recession.
Trump’s measures to safeguard American steel and aluminum manufacturers reinstates effective global tariffs of 25% on all imports of these metals and extends the tariffs to hundreds of products derived from them. Trump defended these tariffs in comments made late Tuesday and did not dismiss the possibility of increasing the tariffs further.
On Tuesday, Trump warned Canada that he could double the tariff to 50% on its steel and aluminum exports. However, he reversed his stance after Ontario Premier Doug Ford announced the suspension of a 25% electricity surcharge affecting around 1.5 million U.S. energy users in New York, Michigan, and Minnesota.
Ford is scheduled to fly to Washington on Thursday for discussions with U.S. Commerce Secretary Howard Lutnick and other Trump administration officials regarding amendments to the U.S.-Mexico-Canada Agreement on trade.
U.S. stocks have seen a significant decline in recent days as investors worry that the instituted tariffs will hamper economic growth. According to J.P. Morgan’s chief economist, there is a 40% probability of a U.S. recession by 2025.
Recent Developments:
∎ Trump has rescinded all exemptions from his 2018 metal tariffs and raised the aluminum tariff from 10%.
∎ The European Union has retaliated with its own trade measures, announcing new duties on various U.S. industrial and agricultural products.
Inflation slowed more than anticipated in February, but economists suggest that this reprieve could be temporary, and the influx of import tariffs is expected to drive prices up. Used car prices increased in February, while gasoline prices decreased. Grocery prices remained constant after a period of rising costs, and rent increases have hit a three-year low.
Some economists indicate that the president’s import fees, notably on Chinese goods, may already be renewing inflation for items such as home furnishings, clothing, and electronics.
In February, consumer prices surged by 2.8% from the previous year, down from a 3% increase in the prior month, as reported by the Labor Department’s consumer price index. While this breaks a sequence of four consecutive annual increases, it still remains above the September low of 2.4% and the Federal Reserve’s 2% target. Read more here.
− Paul Davidson
NOAA is proceeding with the layoff of 1,029 employees as part of the widespread layoffs initiated by the Trump administration across various federal departments, according to an email from NOAA acquired by USA TODAY.
“This does not involve reductions in National Weather Service (NWS) forecast operations and maintenance support at this time,” the email sent to NOAA staff reads. “However, final decisions will lie with the Department of Commerce.”
The layoffs follow the termination of more than 880 recently hired or promoted probationary employees last month. However, the most recent email states that “a few probationary employees in NOAA have received rescission letters reversing their terminations,” indicating that those layoffs “were made in error.”
Federal agencies are finalizing their “Reduction in Force” strategies ahead of the Thursday deadline established by the Trump administration.
− Joey Garrison
According to J.P. Morgan’s chief economist, there exists a 40% chance of a U.S. recession this year, with the potential for long-term damage to the country’s investment standing if the administration diminishes trust in U.S. governance.
“Currently, we are facing increased concern regarding the U.S. economy,” Bruce Kasman, the chief global economist for the U.S. investment bank, shared with reporters in Singapore on Wednesday.
Economists from Goldman Sachs and Morgan Stanley downgraded their U.S. GDP growth estimates last week, now forecasting growth of 1.7% and 1.5% for this year, respectively.
Only a month after Trump’s administration dismissed over 100,000 early-tenure government employees, a more extensive workforce reduction is being planned across the nation. These layoffs come as economists grow increasingly apprehensive about the risk of a recession linked to Trump’s trade battles with Canada and Mexico, which have negatively impacted stock prices.
On Tuesday, a Trump administration official revealed to USA TODAY that the Department of Education intends to cut its workforce by half. Staff members were instructed not to report to the office on Wednesday.
The next key deadline is Thursday, by which agencies must submit their plans for widespread layoffs. Notifications of job terminations can happen any day now, informing employees that their positions will be ending in 30 or 60 days.
− Erin Mansfield
Consumers in the U.S. might see an uptick in prices for a wide array of products, ranging from fertilizers to printed books and sugar. Travelers might also feel the repercussions. Trump’s latest tariffs are likely to influence travelers, although the effects may not be as immediate or apparent as price surges in other sectors.
According to Steven A. Carvell, a finance professor at the S.C. Johnson College of Business at Cornell University, the initial impact of the tariffs will likely hit business travel the hardest. He noted that major trade events, such as the annual Consumer Electronics Show (CES) in Las Vegas, could be affected if businesses opt to focus on exhibiting in other nations.
“There will be reduced cross-border travel and decreased demand for hotel rooms as a result,” Carvell conveyed to USA TODAY. “There will be less group travel and fewer meetings due to this.”
Trump defended his robust approach to tariffs during remarks on Tuesday directed at business leaders in Washington, hinting at the possibility of increased tariffs in the future. During his speech at The Business Roundtable, Trump touted a “renewed spirit” in the U.S. manufacturing industry due to his import tariffs, despite the fact that the new levies have triggered a decline in stock market performance.
“They don’t want to incur a 25% tariff or whatever it may be,” Trump stated when referring to the tariff rate imposed on imports from Canada and Mexico, in addition to all steel and aluminum imports. “The higher it goes, the more likely they will decide to build (in the United States).”
Trump’s comments arrived shortly after his administration suddenly reversed a decision to double tariffs on steel and aluminum imports from Canada to 50%, following Ontario’s Premier Doug Ford’s agreement to halt a 25% electricity surcharge on U.S. energy users.
Some companies have indicated that they are exploring options to expand or establish operations in the U.S. in anticipation of Trump’s tariffs. The Italian spirits group is weighing opportunities to grow its production in the U.S. while maintaining its brand’s essence, according to its new CEO Simon Hunt on March 5.
The Taiwanese contract manufacturer Compal Electronics may also expand into the U.S. and has engaged in discussions with several southern states regarding a potential investment, as noted by CEO Anthony Peter Bonadero in January, highlighting Texas as a leading candidate, although no decisions have been finalized yet. Read more here.
Contributing: Reuters
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