Paul Ryan Issues Stark Warning Over Trump’s Tariff Strategy

Washington, D.C. – August 7, 2025
Former House Speaker Paul Ryan worries about Trump’s tariffs. He claims the former president’s trade policy will be illegal and a threat to the U.S. economy.

Ryan said on CNBC’s “Squawk Box” that the current state of the economy is like “driving a car with two feet,” meaning that one foot is on the gas and the other is on the stop. He said that things like tax cuts, fewer rules, and the growth of the AI industry were all good for increasing output. But he also said that rising tariffs and the national debt are very dangerously unstable.

“It’s a mix that can catch fire,” Ryan said. “People are getting scared because of that.”

Ryan specifically talked about the confusion that Trump’s new tariffs on dozens of countries will cause, which are set to go into effect on Thursday. He thinks that these steps could hurt the economy and the law.

Tariff Policy Faces Legal Uncertainty

Ryan suggested that the Supreme Court could likely overturn Trump’s use of emergency powers to enforce his tariffs. Trump has used the 1977 International Emergency Economic Powers Act (IEEPA) as the legal foundation for his “reciprocal” tariffs—a move that is now under judicial review.

If courts strike down this authority, Trump may be forced to rely on different laws, potentially destabilizing trade agreements already in place.

No Clear Pattern in Tariff Decisions, Ryan Says

Another major concern Ryan raised was the apparent lack of logic in how Trump decides on specific tariff rates. For instance, the former president proposed a 50% tariff on Brazil, despite the U.S. maintaining a trade surplus with the country.

“There’s no solid economic rationale,” Ryan noted. “It seems more driven by instinct than strategy.”

This kind of unpredictability, according to Ryan, could trigger more lawsuits and intensify the strain between the U.S. and its trading partners.

Tariff Revenues Skyrocket — But At What Cost?

Recent data from the U.S. Department of the Treasury shows that the government collected nearly $30 billion in tariff revenue in July alone—an increase of 242% compared to the same month last year. Since Trump’s “Liberation Day” tariff rollout in April, the U.S. has collected over $150 billion in duties.

But while these numbers may look impressive on paper, Ryan warns that they reflect growing pressure on American businesses and consumers, who are ultimately paying more for imported goods.