Analysts have warned the trade fights could undermine the economy, which will celebrate 10 years of expansion next month, the longest on record.
The hiring fizzle comes as Trump has faced off in trade negotiations with some of the country's largest trading partners.
Last week, President Trump acknowledged he would impose a tariff on all goods from Mexico to are attempting and force Mexican authorities to cease Central American immigrants from crossing the USA border.
And last week, he threatened to impose 5 per cent tariffs on all Mexican imports to the United States beginning Monday.
"We are closely monitoring the implications of these developments for the USA economic outlook and, as always, we will act as appropriate to sustain the expansion", Fed Chairman Jerome Powell said Tuesday at a conference in Chicago.
"The market reaction to the weak U.S. employment report for May suggests that investors are putting a lot of faith in the Fed and its ability to keep the economy strong", Andrew Hunter, a senior USA economist at Capital Economics, told investors in a Friday memo.
The report supports suspicions that the labor market is finally slowing down from its blistering pace in 2018, with revisions to the past two months subtracting 75,000 jobs. The amount of new jobs was below the 180,000 that had been forecasted by economics.More news: Nintendo E3 2019 Games: Zelda, Pokemon, Luigi's Mansion, And More
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In terms of economic data, hiring in the States slowed down sharply in May after a 224,000 gain during the previous month.
The Fed has hinted at a possible rate cut earlier this week, sending stocks up, despite some worries over the ongoing U.S.
Prospects for a rapid rate cut propelled another rally on Wall Street Friday. The sector has grown by only 30,000 jobs this year, after adding 264,000 last year.
Over the past three months, job gains have averaged 151,000 per month. A separate report from the Fed showed that factory output fell 0.5% in April.
Meanwhile, average hourly wages rose 0.2 percent compared to April to 27.83 US dollars, disappointing economists who had hoped for slightly stronger gains. Annual wage growth hit 3.4% in February but has since pulled back slightly, raising concerns that this might be as good as it gets for workers this time around. The average workweek for all private employees was unchanged at 34.4 hours. The healthcare sector added 16,000 jobs while construction and manufacturing contributed 4,000 and 3,000 jobs, respectively.
Fed policy makers have described the economy as solid, though recent remarks from Chairman Jerome Powell signaled openness to lower rates if needed. The economy grew at a 3.1 per cent pace in the first quarter. It noted that unemployment remains at a historically-low 3.6 percent, or just under 6 million Americans.
HORSLEY: Wages are still going up, although not quite so fast as they had been.