Economist Peter Schiff has accused former President Donald Trump of manipulating the market with his recent threat to impose a 50% tariff on imports from the European Union (EU). Schiff believes Trump’s move isn’t just bad policy, it’s a strategy to influence markets for personal or political gain.
The controversy began when Trump posted on Truth Social that the EU was taking advantage of the U.S., suggesting steep new tariffs could begin as soon as June 1. Schiff argues that these threats would make European goods more expensive than Chinese ones, giving U.S. traders a reason to shift buying habits possibly after some have already positioned themselves in the market to profit.
This isn’t the first time Trump’s timing has raised questions. In April, he posted “Great time to buy!!! DJT,” just before news broke of a 90-day pause on tariff escalation. Markets rallied, and critics including some Democratic lawmakers are now asking whether insider trading laws were violated.
Schiff pushes back on the idea that these threats are just negotiation tools to protect U.S. jobs. He points to the past trade war with China, which caused disruption but brought little benefit. In his view, Trump’s actions are more about headlines and market reactions than real economic policy.
Markets responded quickly to Trump’s latest announcement. Both the Dow Jones and S&P 500 dipped. Even Bitcoin, which had hit an all-time high earlier, fell 2.6%.
In a time where markets react instantly to political moves, Schiff’s warning is clear: leadership must be transparent and responsible. Bold words from the top can move billions of dollars and when that happens, it must be for the country’s benefit, not political theater.
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