Economist Peter Schiff criticized President Donald Trump’s tariff policies as the advance U.S. goods-trade deficit unexpectedly widened in September.
In a post on X on Wednesday, Schiff described September’s goods-trade deficit as one of the largest on record and said the only larger shortfalls occurred during Trump’s presidency in 2025. He presented the latest figure as evidence that tariffs have not delivered their stated manufacturing or trade objectives.
The economist argued that the U.S. is importing more goods than ever, remains increasingly reliant on foreign producers and is paying Trump’s tariffs on those imports.
“The tariffs have been a complete failure,” wrote Schiff. He also questioned, “if the economy is booming as Republicans claim, why have our trade deficits gone way up?”
Schiff argued that, compared with former President Joe Biden term’s final two years, Trump’s first two years have seen slower GDP growth and job creation, higher inflation, and larger budget and trade deficits. He contended that, by Trump’s own criticism of Biden’s economic record, these comparisons undermine Trump’s claims about the economy.
“Trump economy is now the worst economy in history,” he said.
Rand Paul Calls Tariffs as Tax
Sen. Rand Paul (R-Ky.) argued that tariffs are taxes paid by American farmers, manufacturers, and consumers, not by China or Canada. He opposed blanket tariffs and advocated free and fair trade that benefits all Americans.
Record Imports Drive Trade Deficit Wider
On Wednesday, the Commerce Department announced the Advance Economic Indicators Report, wherein the U.S. goods trade deficit unexpectedly widened 2.1% to $134.9 billion in September, the largest since March 2025, as imports surged to a record $344.1 billion. Imports of capital goods jumped 7.5% month over month and 77.2% year over year, driven partly by demand tied to the AI infrastructure buildout.
Goods exports rose 2.6% to $209.2 billion in September, led by a 12.8% increase in food shipments. Capital goods exports climbed 5.4%, and consumer goods exports rose 6.5%. However, motor vehicle and industrial supplies exports declined. Imports of consumer goods increased 3.1%, while industrial supplies imports fell 6%.
Economist Daniel Vielhaber told Reuters that the widening trade deficit may weigh on third-quarter GDP, but reflects strength in the U.S. economy, driven by sustained business investment and consumer spending.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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