A Supreme Court ruling against the Trump-era tariffs could be the jolt the stagnating job market needs, according to Moody's Analytics chief economist Mark Zandi. In a recent social media post, Zandi highlighted the potential for the court's upcoming decision on the tariffs to alleviate pressure on employment and stimulate growth.

The economist's comments follow a disappointing December jobs report, which revealed a modest increase of 50,000 payrolls and an unemployment rate of 4.4%. The full year 2025 saw the addition of only 584,000 jobs, a significant drop from the 2 million jobs created in 2024 and the weakest performance outside of a recession since the early 2000s. Zandi pointed out that since the implementation of the "Liberation Day" tariffs in April, the labor market has essentially stalled, with potential revisions likely to show net job losses.

Zandi attributed the slowdown to the direct impact of tariffs on key sectors such as manufacturing, transportation, distribution, and agriculture, all of which are experiencing job losses. He also cited the indirect effect of uncertainty on hiring decisions across most businesses. Trade-exposed industries, in particular, suffered substantial losses in the past year. The manufacturing sector, for instance, shed 70,000 jobs.

The tariffs, initially imposed by the Trump administration, aimed to protect domestic industries and reduce trade deficits. However, critics argue that they have instead increased costs for businesses and consumers, disrupted supply chains, and stifled economic growth. The Supreme Court's decision will have significant implications for the future of U.S. trade policy and the overall economic outlook. A ruling against the tariffs could provide a much-needed boost to the job market and help revive economic growth, while upholding them could further exacerbate the current stagnation.