Peter Schiff Unleashes Fury on Scott Bessent: Why Tariffs ARE Taxes and Why It Matters for Treasury

Economic commentator and outspoken gold advocate Peter Schiff has launched a scathing attack on Scott Bessent, a prominent financier and potential contender for Treasury Secretary in a future Trump administration. Schiff's ire was ignited by Bessent's assertion that former President Donald Trump's tariffs are not, in fact, taxes – a claim Schiff vehemently denounces as economically illiterate and disqualifying for such a crucial role.

Schiff, known for his unyielding adherence to free-market principles, minced no words in his critique.

He took to social media to dissect Bessent's perspective, which appears to align with the protectionist rhetoric often employed by Trump. Bessent reportedly argued that tariffs are paid by foreign nations or are merely a strategic tool, rather than a direct financial burden on American consumers and businesses.

This stance, according to Schiff, demonstrates a fundamental misunderstanding of basic economics.

“Scott Bessent is disqualifying himself from consideration to be Treasury Secretary by denying tariffs are taxes,” Schiff declared, leaving no room for ambiguity. He underscored that a tariff is, by definition, a tax levied on imported goods.

When these goods enter the U.S. market, the cost of the tariff is almost invariably passed on to the American consumer in the form of higher prices. Furthermore, American businesses that rely on imported components or raw materials also face increased costs, which again, are often passed down the supply chain.

Schiff's argument is rooted in the principle that while tariffs might aim to protect domestic industries, their immediate and undeniable effect is to increase the cost of goods for the purchasing public.

This effectively acts as a consumption tax, eroding purchasing power and potentially stifling economic growth. To suggest otherwise, he implies, is to ignore the direct economic consequences borne by the very citizens and companies the administration purports to help.

The economist's pointed criticism serves as a stark reminder of the ideological battle lines drawn within conservative economic circles, particularly concerning trade policy.

While some, like Bessent, might view tariffs as a powerful negotiating tool or a means to level the playing field, figures like Schiff see them as counterproductive impositions that ultimately harm the domestic economy through stealth taxation and reduced competition.

For Schiff, the role of Treasury Secretary demands an individual with an unassailable grasp of economic fundamentals.

Denying that tariffs function as taxes, in his view, reveals a critical blind spot that could lead to detrimental policy decisions. His passionate denouncement highlights the ongoing debate about the real-world impact of protectionist policies and sends a clear message: economic truth, as he sees it, should not be sacrificed for political expediency.