Peter Schiff, a well-known economist and outspoken critic of Bitcoin, has weighed in on the escalating trade dispute between the U.S. and China.
As the U.S. gears up to impose a hefty 104% tariff on Chinese imports, Schiff believes Beijing doesn’t need to match those tariffs to deal economic damage—it has other, more impactful tools at its disposal.
Schiff argued that China could destabilize the U.S. economy simply by reducing its financial support. As one of America’s largest creditors and suppliers, China could offload U.S. Treasury bonds, triggering a rise in interest rates. He also suggested China could prioritize domestic consumption over exports to the U.S., which would restrict the flow of affordable goods into American markets and strain the debt-heavy U.S. financial system.
These remarks follow former President Donald Trump’s proposal for an additional 50% tariff on Chinese products—a move that’s being seen as more about pressure than policy. Schiff warned that continued escalation in this trade conflict could further weaken an already fragile U.S. economy grappling with high inflation and rising borrowing costs.
While Washington has already enacted tariffs on Chinese goods, Beijing responded with a 34% increase of its own. However, Schiff suggests that China may not need to rely on tit-for-tat measures. With higher savings and more internal production, China could be better positioned to endure the long-term effects of this economic standoff.
Some market observers point out that if China takes a more aggressive stance—either by cutting off supply chains or selling U.S. debt—it could undercut the dollar and restrict access to credit. Schiff urges a more cautious approach from the U.S. to avoid provoking such outcomes.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/u-s-economy-at-risk-as-china-holds-the-upper-hand-in-trade-standoff-peter-schiff/