Economist Peter Schiff warns that President Donald Trump’s trade deals, which involve commitments for purchasing more U.S. goods, could have unintended consequences for inflation and treasuries.
What Happened: On Monday, in a post on X, Schiff flagged concerns regarding the commitments made by foreign governments to purchase more American goods.
He says, “As part of his trade deals, Trump is getting commitments from foreign governments to purchase more U.S. goods,” but Schiff believes that these deals come with a trade-off, such as “buying fewer U.S. Treasuries,” which he says leads to higher U.S. consumer prices and interest rates.
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He says, “buying more U.S. goods will likely come at the cost of buying fewer U.S. Treasuries, putting added upward pressure on U.S. consumer prices and interest rates.”
Schiff’s claim hinges on the dynamic that if …
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