White House chief economist Stephen Miran doesn’t believe that tariff hikes will contribute to inflation, pointing out that imports only make up 14% of the U.S. economy in an interview with Bloomberg Television’s Surveillance. In addition, Miran said that the last three consumer price index (CPI) reports, which are a gauge for inflation, were all below expectations. The latest CPI report showed 2.3% inflation in April, the lowest rate since February 2021 and below the expectation for 2.4%.
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Tariffs Provide the U.S. with Leverage, Says Miran
Miran added that increased tariffs could result in volatility in the short-term. In the long-term, however, he argues that it increases the nation’s leverage given that the U.S. can source products from other countries or manufacture products domestically. This approach will “allow us to force the burden of the tariffs onto other countries.”
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