- "We will pay 15% tariffs to buy most European goods, but 50% tariffs to buy European steel, aluminum, or copper," Schiff says.
- Missed the rally? Learn exactly where the next leaders are emerging here.
Peter Schiff didn't mince words after President Donald Trump's new trade agreement with the European Union.
The deal is at odds with Trump’s “America First” narrative, the economist and gold advocate argued on social media. That’s because industrial America will pay the price—literally.
What Happened: In a fiery post on X, Schiff wrote: "We will pay 15% tariffs to buy most European goods, but 50% tariffs to buy European steel, aluminum, or copper…"
His verdict? "Americans lose again."
Schiff is often critical of Trump’s policies. His latest post echoes his sentiments from April, on the heels of Trump’s so-called “Liberation Day.”
“By putting America first, Trump has put America last when it comes to investment returns,” Schiff said on X. “America’s consumer-driven economy will fall apart.”
Why It Matters: Schiff warned that the sharply higher tariffs on essential metals will raise costs for American manufacturers across sectors—from construction and cars to defense and energy.
With European steel, aluminum, and copper now slapped with a 50% tariff, U.S. industries dependent on those imports could see thinner margins and less competitive pricing globally.
Economists and CEOs predict these companies will likely pass some or all of the extra cost on to customers.
Read Also: Trump Shock Treatment Ignites Copper Boom—And It’s Only Getting Started
Observers also argue that tariffs could deliver gains for certain U.S. metal producers. Domestic buyers may pivot away from now-costlier European suppliers, thus boosting the stocks of Alcoa Corp AA, Nucor Corp NUE, and Freeport-McMoRan Inc FCX.
If material costs rise broadly, American miners and smelters could command better prices and improved volumes.
Still, Schiff remains skeptical. While certain U.S. stocks may catch a tailwind, the economist insists the macro impact could be inflationary and productivity-draining.
According to Schiff, Trump's EU deal trades campaign optics for long-term economic pain—and investors would be wise to read between the tariffs.
Price Action: The Materials Select Sector SPDR Fund XLB is up about 10% year-to-date, as can be seen here.
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