Trump sticks by tariffs, but no guarantees on inflation
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President-elect Trump. Photo: Oleg Nikishin/Getty Images
President-elect Trump reiterated his promises to impose tariffs and increase oil production, even if it impacts consumers.
Why it matters: By sticking to his campaign pledges, Trump would all but assure a fresh spike in inflation, which was a deciding factor in the election.
The big picture: In a sitdown interview with NBC's "Meet the Press" that aired Sunday, Trump renewed his most important economic plans.
On tariffs, Trump stood by his promise for new levies on major trading partners, which he always insisted those other nations would pay.
- "I don't believe" economists who say tariffs would cause consumer prices to rise, Trump told "Meet the Press" moderator Kristen Welker.
- But pressed to guarantee that prices won't rise, Trump said "I can't guarantee anything. I can't guarantee tomorrow."
- He also insisted the tariffs in his first administration didn't cost the consumer anything, despite research to the contrary; and that there was no inflation during his presidency, despite Fed data showing prices rose consistently throughout his term.
- The National Retail Federation estimates that a 60% tariff on China could cost the average American household up to $624 a year. The Peterson Institute for International Economics estimated Trump's full tariff plan could cost a middle-income household $2,600 a year.
On energy, Trump reiterated a commitment to "drill baby drill," a familiar refrain from his first term referring to expanded domestic oil drilling.
- The world currently faces a historic oil glut, and the U.S. is already the top producer in an oversupplied market.
- Oil futures have slipped since Election Day amid the prospect of more drilling.
Yes, but: In a nod to stability, Trump said he won't (for now) try to fire Fed chair Jerome Powell.
- "No, I don't think so. I don't see it," Trump said.
- Powell previously said he wouldn't resign if Trump asked. Trump acknowledged that Sunday, but also said Powell would go if ordered.
