We Can’t Rely on Trade Barriers
On Tuesday’s episode of the Peter Schiff Show, Peter Schiff tackles the chaotic state of the markets following another round of tariff increases from President Trump. Peter critiques the logic behind tariffs, examines the unraveling of consensus trades like the AI investment frenzy, and highlights potential pitfalls facing American investors who have placed misguided faith in dollar strength. He also reflects on the recent turbulence in the stock market, warning listeners about the dangers of overlooking fundamental economics in favor of politically-driven narratives.
Opening with an overview of the recent turmoil in the stock market, Peter puts the market drop into historical context, underscoring how perception can overshadow reality when analyzing market moves:
But anyway, so the stock market yesterday was a big drop. The Dow at one point was down over 1,000 points, which I know is not that much when you’re talking about a Dow above 40,000. So a 1,000 point drop in the Dow is not what it used to be a couple of decades ago. Remember, the ’87 stock market crash, the big crash, was 508 points because the Dow was 2,800 or something like that. But we’ve had a lot of 1,000 point drops in the Dow, but they always grab the headline because it still sounds like a lot. It’s a big number.
The volatility was largely triggered by new tariff announcements. Peter voices concern over Trump’s latest tariff hike on Canadian aluminum and steel, outlining the downstream consequences for American businesses and consumers:
But we got some negative positive news on tariffs. First Trump is going to double the tariffs on Canadian aluminum and steel from 25% to 50%, which is a big problem for every company that needs steel and aluminum to make something. Those are important parts of automobiles, housing, appliances, aircraft. We use a lot of those metals, and now they’re going to be a lot mo
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
