Senator Rand Paul (R-KY) tore into President Donald Trump’s tariffs on Tuesday, blasting the reasoning behind them as “fake accounting” and calling it “economic nonsense.”
In a fiery interview on Fox Business, Paul didn’t hold back. He argued that Trump’s approach to trade is fundamentally flawed, and he doesn’t believe tariffs are the solution. “If you tax something, you get less of it, and I don’t want less trade. I want more trade,” Paul said.
The senator also rejected the idea that trade is a win-lose situation, a view that Trump and his advisors seem to hold. He explained, “All trade is mutually beneficial,” using Walmart as an example: “When I go to Walmart, if I pay ten dollars for a shirt, I want that shirt and they want my ten bucks, and we both go away from the deal having succeeded.”
Paul’s criticism didn’t stop there. He slammed the idea that countries like China are “ripping us off,” calling it “fake accounting.” He added, “Trade deficits are not real accounting… it doesn’t mean anything.”
The senator also explained why trade deficits aren’t a reliable economic indicator. “The higher the trade deficits, the more prosperity,” Paul argued, pointing out that trade deficits increase during economic booms and shrink during recessions. He further stressed that nothing about a trade deficit provides useful insight into the economy.
In a rare moment of agreement, Fox Business host Larry Kudlow, who has supported Trump’s policies, said, “I actually agree with you about trade deficits.”
Paul has been a consistent critic of Trump’s trade policies and has faced backlash from the president, who accused him of disloyalty after Paul opposed tariffs on Canada. Paul warned that Trump’s economic approach, if left unchecked, could lead to political disaster for the Republican Party in future elections.
“This whole debate is so fundamentally backwards and upside down,” Paul said, calling the tariffs a mistake that could hurt the economy and the GOP’s political future.
Watch the video below via Fox Business News:
BREAKING: Rand Paul just told FOXBusiness news that Trump‘s tariffs are basically insane. He schools the president on trade deficits and the economy.
“The higher the trade deficits the more prosperity. The lower the trade deficits the less prosperity.” pic.twitter.com/L41zzPRQgL
— Brian Krassenstein (@krassenstein) April 8, 2025
