(Reuters) - The U.S. economy added far more jobs than expected in March, but President Donald Trump's sweeping import tariffs could test the labor market's resilience in the months ahead amid sagging business confidence and a stock market selloff.

Nonfarm payrolls increased by 228,000 jobs last month after a downwardly revised 117,000 rise in February, the Labor Department said on Friday. Economists polled by Reuters had forecast payrolls advancing by 135,000 jobs after a previously reported 151,000 rise in February. The unemployment rate rose to 4.2% from 4.1% in February.

The report came amid a global stock rout and rally in safe-haven government bonds after U.S. President Donald Trump's sweeping tariff plans sowed fears about a global recession, with the sell-off deepening after China said it would impose additional levies of 34% on American goods.

MARKET REACTION:

STOCKS: S&P 500 E-minis pared a loss to -2.5%, still pointing to another big drop at the open on Wall Street

BONDS: The yield on benchmark U.S. 10-year notesrose to 3.9214%, the two-year note yield rose to 3.545%FOREX: The dollar index turned 0.19% higher and the euro turned 0.26% lower

COMMENTS:

BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, MENOMONEE FALLS, WISCONSIN

"There's not a lot to dislike about the employment report. Haters will hate, but aggregate hours worked and aggregate weekly earnings both increased. Federal employment cuts are in the data, but not completely as those won't show up for a few more months. The diffusion index for manufacturing is abysmal and the sector as a whole only added 1,000 jobs. This suggests that manufacturing's glimmer of hope has faded for now. The Fed doesn't meet for another month, but when it does it can comfortably cut if tariffs are still in place at that time, but it won't likely feel a sense of urgency to."

LINDSAY ROSNER, HEAD OF MULTI SECTOR FIXED INCOME INVESTING, GOLDMAN SACHS ASSET MANAGEMENT (emailed comments)

"Today's better than expected jobs report will help ease fears of an immediate softening in the US labor market. However, this number has become a side dish with the market just focusing on the entrée: tariffs."

(Compiled by the Global Finance & Markets Breaking News team)