Context:

Stephen Miran, chair of President Trump's Council of Economic Advisers, asserts that the current economic volatility, resulting from historically high tariffs and ongoing trade negotiations, does not necessarily indicate long-term negative impacts. The administration's approach includes a focus on deregulation to address supply issues, such as the housing shortage, and aims to boost competitiveness through tax relief and reducing regulatory burdens. Despite the potential for short-term disruptions, Miran emphasizes the administration's commitment to reshoring manufacturing and reshaping global trade dynamics, suggesting that tariffs will not significantly increase consumer costs in the long run. While Miran defends the administration's strategies, some economists criticize a perceived departure from economic principles in favor of political objectives. Overall, the administration's stance remains steadfast on reordering global trade and encouraging domestic economic growth.

Dive Deeper:

• Stephen Miran supports President Trump's trade policies, arguing that while financial markets show volatility due to high tariffs, this does not predict long-term economic harm. He believes the economic environment will stabilize, with businesses adjusting their strategies as trade negotiations progress.

• The Trump administration is tackling the housing shortage by implementing a deregulatory agenda, aimed at removing barriers that prevent firms from increasing supply. This strategy contrasts with previous federal-led approaches that incentivized local deregulation through financial incentives.

• Miran highlights the administration's focus on boosting manufacturing by making the U.S. more competitive through tax cuts and deregulation, anticipating a resurgence in manufacturing construction that had previously seen a boom between 2020 and 2024.

• Despite concerns from some investors about reduced demand for U.S. assets and a potential weakening of the dollar, Miran maintains that investment will ultimately be attracted to the U.S. due to economic opportunities fostered by current policies.

• The administration's trade policy aims to reduce the trade deficit with China, a move Miran supports by aligning with President Trump's understanding that less trade with China equates to financial savings, despite criticisms regarding this interpretation of trade deficits.

• While maintaining high tariffs, the administration assures that costs for businesses and consumers will not significantly rise, as supply chains adjust over time and sourcing shifts to more favorable trade partners, though experts caution that such transitions may take years.

• Miran defends the administration's economic strategies against critiques of compromised intellectual integrity, emphasizing a commitment to fostering a robust economic environment in the U.S. despite short-term disruptions in global trade dynamics.