White House: Odds of tariff-related inflation are low, like 'pandemics or meteors'

A apical White House economic advisor connected Tuesday likened the likelihood that President Donald Trump's tariffs volition pb to higher prices to those of a meteorite striking earth.

"Rare events happen. We get pandemics or, oregon meteors oregon whatever," said Stephen Miran, president of Trump's Council of Economic Advisers, connected CNBC's "Squawk Box."

But "there's conscionable nary grounds frankincense acold of it happening," Miran said.

Anchor Melissa Lee noted that Miran was equating tariff price increases with highly uncommon events.

"I don't mean to beryllium dismissive," helium replied. "All I mean to accidental is that prediction is difficult, and we should ever talk successful presumption of likelihood and possibilities."

"I don't person a crystal shot telling maine the aboriginal and neither does anyone else," helium said.

Miran besides promoted a new report from his White House council, which highlighted the information that prices of imported goods had fallen betwixt December of past twelvemonth and May, contempt fears that Trump's tariffs would hike prices.

Trump did not denote his "reciprocal" tariff docket until April. And helium has doubly extended the deadline helium acceptable for countries to scope bilateral commercialized deals with the U.S. and debar these highest rates.

While prices immoderate individual goods person already risen arsenic a effect of tariffs, Trump's policies person yet to spur the wide ostentation that businesses and consumers feared.

Many economists accidental they inactive expect to spot prices summation successful the coming months. And they constituent to aggregate reasons why those higher prices person not yet appeared.

One is the information that Trump has repeatedly delayed implementing galore of his astir terrible "liberation day" tariffs.

A 2nd is the hold betwixt tariffs and their existent satellite terms impact, portion a 3rd origin is the stockpiling that galore companies did earlier this year.

Miran was asked connected CNBC whether the White House expects the tariffs to rise prices successful the future.

"'Won't it travel eventually?' said Miran, paraphrasing the anchor's question. "I mean, sure, eventually, you know, a meteor is going to onslaught oregon whatever. But we've been waiting galore months present and that grounds has conscionable not emerged."

The White House study analyzed 2 ostentation gauges: the Personal Consumption expenditure Price Index, oregon PCE, which is followed by fiscal markets, and the wide tracked Consumer Price Index, oregon CPI.

"The results intelligibly amusement the terms of imported components declining, starting successful March, portion wide prices were adjacent to unchanged oregon accrued slightly," the study concluded.