Peter Schiff just blasted America’s trade deal with China — warns the Asian nation won by calling Trump’s ‘bluff’ on 145% tariffs, agreeing to ‘nothing’ in return. Is he right?

Higher costs and lower growth

Despite recent trade deals with China and the UK, American consumers face an overall average effective tariff rate of 17.8%, the highest since 1934, according to The Budget Lab at Yale.

It estimates the U.S. tariffs and foreign retaliation will lower real GDP growth by 0.7% over 2025, raise the unemployment rate by 0.35% by the end of the year and increase price levels by 1.7% in the short-run, the equivalent of a loss of purchasing power of $2,800 per household on average in 2024 dollars.

Pantheon Macroeconomics U.S. economist Samuel Tombs believes that the tariffs could end up adding about 1% to the core PCE price index, according to The Wall Street Journal. This he thinks could compel the Federal Reserve to keep interest rates elevated, which would mean mortgages and auto loans remain expensive for longer.

Given that the trade deal is just a 90-day pause, there’s also some concern that businesses can’t make long-term investment decisions yet. Put simply, investors and consumers face an uncertain future and must take steps to protect themselves.

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Protect your assets

In times of volatility and uncertainty, Schiff has championed gold as a safe haven. The price of an ounce of gold is up 22% in the past six months and currently trades at $3,189.

A gold exchange-traded fund such as the SPDR Gold Shares (GLD) could help you diversify your portfolio and provide a buffer against some of the market volatility. There are other ways to own gold as well.

Another potential safe haven could be Treasury Inflation-Protected Securities (TIPS). Unlike typical U.S. treasuries, these instruments adjust the principal based on the inflation rate, which means your money is protected from this invisible drain on purchasing power.

TIPS are particularly useful if you have a low risk tolerance and are worried about higher inflation.

As for consumers, your family’s actual expenses could be higher or lower depending on where tariffs go from here. Adding a margin of safety to your annual spending plan could be the best way to protect your family from this uncertainty.