Schiff: Trump’s Wrong; “We Screw Over The World” On Trade

Donald Trump’s tariffs split opinion—champions said they were leverage to rebuild U.S. industry, while critics argued they were hidden taxes that raised costs and invited retaliation. At last night’s ZH Debate, Cornell chemistry professor Dave Collum — fresh off his Tucker Carlson controversy — moderated as Peter Schiff and Brent Johnson squared off on trade, tariffs, and the future of the dollar.

Brent is no fan of tariffs but thinks there is some wisdom to Trump’s long-term plan and that the U.S. dollar still reigns supreme. Peter… well all ZH readers know where Peter stands.

Below were the key moments for those short on time:

Trump Has Trade Deficits Wrong

Peter Schiff argued that America’s trade deficits are misunderstood. “It’s actually the other way around,” he said, pushing back on Donald Trump’s claim that the U.S. is being taken advantage of. “We take advantage of the world. They give us goods produced at significant cost in resources, land, labor, capital… and all we do is run off dollars on a printing press, cost us nothing, and we give it to them.”

Brent Johnson responded that this imbalance is exactly what comes with America’s position. “That’s the privilege of being the hegemon as you get global.”

Schiff countered that such privilege is temporary. “It’s the privilege that we are about to lose. That’s what $3,500 gold tells you. Dollar is on the way out as the reserve currency.”

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— ZeroHedge Debates (@zerohedgeDebate) September 5, 2025

“I expect Powell to lose”

Brent went on record with a bold call that included something rarely seen in market commentary: timing.

He predicts — as soon as October — a 10 or 20% market downturn… perhaps welcomed by the Trump admin so they can blame the Fed and lower rates.

“To get the cover to do that, they need some pain. I don’t think they can do that right now with things the way they already are.”

“Some kind of a crisis that they blame on the Fed, and then they go back to even easier monetary policy than maybe they had last time. And that is what then gives the fuel to go much higher.”

With markets at record highs and inflation still sticky, “it’s really hard to do it now.”

Brent’s prediction: “I think Powell is pushing back a little bit. But this is the thing—I expect Powell to lose. I think Trump and Bessent are going to get control.”