Don Bacon concerned President Trump's tariffs now weighing on economy of Nebraska, nation

Rep. Don Bacon sees troubling signs that President Donald Trump’s tariffs are beginning to weigh on the economies of both Nebraska and the nation.

In an interview with The World-Herald, Bacon noted how Nebraska and Iowa recently posted the nation’s biggest declines in GDP. He said he has heard from Fortune 500 companies and farmers in Nebraska who claim the tariffs have harmed them.

Then there was last Friday’s job report, which showed the nation has posted anemic job growth the past two months — a report that led Trump to fire the commissioner of the Bureau of Labor Statistics.

“I think shooting the messenger is not a good thing,” said Bacon, the Republican who represents the Omaha-based 2nd Congressional District. “I think there’s some deep concerns going on with Nebraska, Iowa right now.”

A recent federal report showed Nebraska and Iowa both posted GDP declines of 6% during the first quarter this year. Bacon said much of that is due to economic headwinds that grain farmers have been facing for about two years. But he said it appears to be getting worse.

“I don’t think the tariffs have helped,” he said.

Bacon acknowledged that Trump has utilized tariffs as a bargaining chip and enjoyed some success. He recently secured a trade agreement with the European Union with favorable terms.

But Bacon said the baseline tariffs Trump has put in place on dozens of countries are without doubt raising prices, in the end passed on to consumers.

One Omaha business representative told Bacon his firm recently lost a contract in Canada, though Bacon said it was unclear whether that was due to tariffs or some of the “51st state” rhetoric Trump has used regarding America’s neighbor to the north.

Last Friday’s BLS job report significantly revised down previous estimates for recent U.S. job growth, with the country now estimated to have added only 19,000 jobs in May and 14,000 in June.

Trump claimed without evidence that the revised job numbers were “rigged” to make him and Republicans look bad.

Bacon said he’s seen nothing to suggest that’s the case. The figures, which are based on surveys of businesses, are routinely revised as new data comes in.

He said Nebraska jobs data also appears to be relatively weak.

BLS data for Nebraska shows the state has added just over 9,000 nonfarm jobs in the past year, representing job growth of less than 1%. The state has also shed 2,500 manufacturing jobs in that time and more than 2,000 jobs in trade, transportation and utilities.

Bacon expressed concern with Trump’s firing of the BLS director, saying jobs data should not be politicized.

“You’ve got to have reliable data to make decisions,” he said. “I think we want to protect the integrity of the system.”