Peter Schiff issues dire warning on Trump’s trade deficit stance — calls it ‘all wrong’ and says prices ‘would go way up.’ Here’s why and how to protect yourself ASAP

Schiff, the chief economist and global strategist at Euro Pacific Asset Management, strongly disagrees with the president.

“Trump’s take on trade deficits is all wrong,” he wrote on Instagram, sharing a clip from The Peter Schiff Show podcast where he elaborated on his critique.

“[Trump] said we have a huge trade deficit with Canada as if somehow that’s harming the United States — it’s actually helping the United States. It’s unfortunate that we’re not productive enough to get by without all those Canadian products,” Schiff explained.

“Donald Trump specifically said we don’t need any Canadian cars, we don’t need any Canadian timber — of course we do! I mean, we build houses, we drive cars. I mean, if we didn’t have access to Canadian lumber or Canadian cars or any of the other things that we import from Canada — America imports a lot of stuff from Canada — what does Donald Trump think would happen to the price of all that stuff? It would go way up,” he argued.

America imports a significant volume of goods from Canada — and it’s not limited to timber and cars. The list also includes crude oil, petroleum products, natural gas, and electricity, among others.

Schiff also criticized Trump’s perspective on trade deficits with Europe, pointing out that America depends on European goods as well.

Double-digit inflation in 2025?

Schiff didn’t mince words, asserting that by imposing tariffs, Trump “wants to add to the inflationary problem.”

He’s not alone in this critique, as economists often view tariffs as a double-edged sword. On one hand, they can protect domestic industries by making imported goods more expensive, giving local manufacturers a competitive edge. On the other hand, higher tariffs may result in increased costs for consumers, as companies pass on the extra expenses. This can lead to inflation, eroding household purchasing power and raising the cost of living.

While some economists — including Nobel laureate Paul Krugman — have claimed that the U.S. has won the war against inflation, Schiff strongly disagrees. “Inflation won the war,” he declared. “Inflation is going to keep getting worse.”

How much worse? Last year, he warned, “By 2025 inflation will likely be in double digits, and the first digit may not be a one!”

A timeless safe haven

Given Schiff’s dire forecast of rising price levels, where should investors seek refuge?

His go-to answer is simple: gold.

The allure of investing in gold lies in its unique properties: the yellow metal can’t be printed in unlimited quantities by central banks like fiat money. And because its value isn’t tied to any one currency or economy, gold could provide protection during periods of economic uncertainty.

As inflation erodes the purchasing power of paper currencies, gold’s appeal as a stable store of value often grows, driving up demand. In 2024, gold prices surged by 26%, surpassing $2,600 per ounce.

Schiff believes this is just the beginning. “If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000. There’s no limit because, again, gold isn’t changing — it’s the value of the dollar that’s decreasing,” he recently stated.

At today’s prices, a climb to $100,000 would represent an astounding upside of over 3,600%.

These days, you don’t even have to go to a bullion shop to buy precious metals. Plenty of online platforms offer a wide selection of gold and silver bars and coins and fair pricing.

Additionally, you can combine the recession-resistant nature of gold with the tax benefits of an IRA by opening a gold IRA.

You can check out our top picks for industry-leading companies offering gold IRAs.

Compare offers instantly and request a free information guide to help you understand how this type of investment could help buffer your portfolio in times of volatility.

A tangible hedge with passive income

In addition to gold, real estate serves as another time-tested hedge against inflation — with the added benefit of generating passive income.

When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. This makes real estate a compelling store of value for investors looking to protect their wealth.

Moreover, real estate doesn’t just rely on appreciation for returns. Rental properties, for instance, can provide a steady stream of passive income. As inflation pushes up the cost of living, rental income typically rises alongside it, helping landlords offset the erosion of purchasing power.

Over the last five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has surged by more than 50%.