President Donald Trump’s decision to impose 25% tariffs on imports from South Korea and Japan is drawing sharp criticism from economists who say the rationale behind the move is fundamentally flawed.
What Happened: On Monday, Economist Peter Schiff called out Trump’s public letters to both East Asian nations, saying that they showed “a complete lack of understanding of trade,” in a post on X.
Schiff notes that the tariffs charged by Japan on U.S. goods average under 2%, and are even lower in South Korea, at under 1%. “Our trade deficits result from South Korea and Japan making more goods that Americans want to buy than the goods we make that they want to buy,” he says.
He also warns that the tariffs are unlikely to achieve their intended effect, which he blames on the falling U.S. dollar in recent months.
“Trump’s 25% tariffs will have …