Last weekend, I caught up with a childhood friend working as a graphic designer. While discussing our respective careers and industries, he mentioned the difficulty his colleagues were having in finding jobs in their field, an experience that seemed to contradict the positive U.S. employment statistics reported earlier in the year. This week, both he and investors anxiously awaited the release of several related reports, hoping to gain a better understanding of the current state of the labor market and its recent shifts.

Tariffs have long been used globally to support local industries by incentivizing citizens to purchase domestically made products. At the turn of the 20th century, tariffs were the primary source of tax revenue for many nations. Today, funding comes from income, payroll and corporate taxes. In the U.S., tariffs accounted for approximately 90% of federal income until the Civil War. After World War II, tariffs fell out of favor in developed economies because they often led to reduced trade, higher prices and retaliation from abroad.

As the final days of May unfold, American consumers are feeling notably more optimistic. After several months of declining sentiment, the latest consumer confidence data showed a strong rebound from an almost five-year low, with the increase largely attributed to easing trade tensions.