Peter Schiff, chief economist at Euro Pacific Asset Management, posted on X on Tuesday, October 6, 2026, stating that the U.S. trade deficit reached $105.6 billion in August. He highlighted that while the reported figure was the fifth-biggest monthly trade deficit in history, it was the largest ever under specific conditions: "if you exclude the first three months of 2025, when imports were pulled forward to front-run tariffs, and March 2022, when pent-up demand was unleashed by the reopening of the economy following the pandemic shutdown, the Aug. 2026 trade deficit was the biggest monthly trade deficit ever."
Schiff's statement comes as the U.S. economy continues to grapple with inflation, with recent Gokhshtein coverage noting that Philippine inflation surged to 7.2%, and gold steadied as inflation misses cut October rate hike odds. The bond market has also seen turbulence, though Bitcoin holds steady, breaking from bond market trends. The overall economic picture involves ongoing discussions around trade policy and its impact on national finances.
Schiff's view suggests that despite current trade policies, the U.S. is experiencing historically large trade deficits. He specifically attributed this to President Trump's trade policies, asserting that "Under his watch, the U.S. is losing more on trade than it lost under any prior president." This implies that, in his assessment, the current approach to trade has demonstrably failed to reduce the deficit.
