On Tuesday, a prominent economic advisor from the White House compared the likelihood of President Donald Trump’s tariffs causing price hikes to the rarity of a meteorite impacting Earth.
Stephen Miran, the chairman of Trump’s Council of Economic Advisers, made the remarks during an appearance on Finance Newso’s “Squawk Box,” stating, “Rare events happen. We get pandemics or, or meteors or whatever.”
Miran asserted, however, that no evidence has thus far indicated that tariffs are driving up prices. “There’s just no evidence thus far of it happening,” he stressed.
The show’s anchor, Melissa Lee, pointed out that Miran’s analogy placed tariff-related price increases alongside highly uncommon events. In his response, Miran clarified, “I don’t mean to be dismissive. All I mean to say is that prediction is difficult, and we should always speak in terms of odds and possibilities.”
“I don’t have a crystal ball telling me the future and neither does anyone else,” he added.
Miran also highlighted a new report released by his council, which noted a decline in the prices of imported goods from December to May, countering concerns that Trump’s tariffs would drive prices up.
Trump’s “reciprocal” tariff strategy was unveiled in April, following two extensions of the deadline for countries to negotiate trade agreements with the U.S. to avoid elevated tariff rates.
Although certain products have seen price increases due to tariffs, the anticipated overall inflation has yet to materialize, sparking ongoing discussions among businesses and consumers.
Economists still predict that inflation may increase in the months ahead, citing various factors that have hindered immediate price hikes.
These include the repeated postponement of the most stringent “liberation day” tariffs by Trump, the inherent delays in translating tariffs into real-world prices, and the significant stockpiling that occurred earlier this year.
Miran was questioned on Finance Newso about the White House’s expectations regarding future price increases as a result of the tariffs.
Rephrasing the anchor’s inquiry, Miran responded, “‘Won’t it come eventually?’ I mean, sure, eventually, you know, a meteor is going to strike or whatever. But we’ve been waiting many months now and that evidence has just not emerged.’
The report from the White House analyzed two key inflation metrics: the Personal Consumption Expenditure Price Index (PCE), which is closely monitored by financial markets, and the more commonly referenced Consumer Price Index (CPI).
The report concluded, “The results clearly show the price of imported components declining, starting in March, while overall prices were close to unchanged or increased slightly.”
