On Friday, renowned economist Peter Schiff criticized U.S. trade policy as President Donald Trump lashed out at the Supreme Court and unveiled a fresh 10% global tariff following a major legal setback.
Schiff Pushes Back On ‘Ripping Off’ Narrative
Schiff took to X to challenge the long-running claim that foreign nations exploit the U.S. through trade deficits.
“No country has been ripping off America,” Schiff wrote. “We rip off the world by exchanging our fiat money for the consumer goods our trading partners produce.”
He warned that if imports slow due to escalating tariffs, Americans could face higher prices at home, arguing that inflation would no longer be cushioned by the dollar’s global reserve status.
Supreme Court Blocks Emergency Tariff Authority
On Friday, the Supreme Court ruled 6-3 that the International Emergency Economic Powers Act does not grant the president authority to impose tariffs.
The majority held that Article I of the Constitution gives Congress the power to levy taxes and duties.
Trump sharply criticized the ruling, saying he was “ashamed” of certain members of the Court while praising the dissenting justices.
He announced a 10% global tariff under Section 122 of the Trade Act of 1974. The provision allows temporary tariffs of up to 15% for 150 days to address balance-of-payments concerns.
Trump said existing national security tariffs under Sections 232 and 301 remain in effect and signaled he could pursue even stronger trade measures.
US Inflation Cools To 2.4% In January
The escalation comes as recent data showed U.S. inflation cooled to 2.4% annually in January, raising questions about whether new tariffs could reverse that trend.
The figure came in lower than economists’ forecast of 2.5% and represented the weakest annual inflation rate since May 2025.
Month over month, the headline Consumer Price Index increased 0.2%, falling short of both the previous month’s gain and Wall Street’s expectation of 0.3%.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Recent Comments