Trump's Tariffs a Negotiation Prompt or New Rules: Stephen Miran

White House Council of Economic Advisors Chair Stephen Miran says President Doanld Trump’s tariff plan could be “either” a negotiation or the new rules of the game, depending on whether countries “offer the right things to persuade the president.” Miran also discusses the impact of tariff uncertainty on US businesses and the potential for tax relief from a combination of tariff revenue and tax cuts.

Stephen Miran, the White House chief economist, said in a separate interview with Bloomberg Television that “a narrow focus on tariff rates is insufficient” to get a deal. Trump on Monday showcased that position in rejecting a European Union offer to drop tariffs on all bilateral trade in industrial goods with the US

Alaska Deal

The reciprocal tariffs “could be either” a negotiation prompt or the new rules of the game, Miran said.

Trump has “maximum negotiating leverage right here, right now,” Bessent said, with the reciprocal tariffs set to kick in April 9.

“We will see what our trading partners offer” as the negotiations get going, the Treasury secretary said. “For instance, there is talk of a big energy deal in Alaska where the Japanese and perhaps the Koreans, perhaps the Taiwanese, would provide — would take a lot of the offtake,” he said, apparently referring to the potential for the three economies to purchase the resultant output.

Trump Tuesday morning posted on Truth Social that he had “a great call” with the acting president of South Korea, Han Duck-soo, which touched on issues including “their joint venture in an Alaska pipeline.”

Alaska Project

The parties to the Alaska project could “provide financing for the deal, so that could be an alternative for them to come forward with that,” Bessent said. “Because not only would that provide a lot of American jobs, but it would narrow the trade deficit.”

Defense could also be a component of new US deals. Miran said that some countries — out of recognition that the US is providing a “defense umbrella” that underpins their security and the safety of the world trading system that provides them with prosperity — may decide that “we’re going to help share the cost of those things, we’re going to send some money to the United States to help provide those things.”

“Like with South Korea, we are bringing up other subjects that are not covered by Trade and Tariffs, and getting them negotiated also,” Trump said. One-stop-shopping “is a beautiful and efficient process!!!”

Yesterday, Bessent said Japan would be prioritized thanks to having come early to the US in seeking negotiations, and because of its importance as an American military as well as economic ally.

Doubts on China

Bessent also said that “I wasn’t involved in the calculations of the numbers” for the reciprocal tariffs unveiled last week, which kick in April 9. By contrast, he said that he and National Economic Council Director Kevin Hassett “have the pen for the administration” with regard to talks with Congress on Trump’s tax-cut package.

Commerce Secretary Howard Lutnick has said that the analysis for the reciprocal tariffs came from the Council of Economic Advisers, which is chaired by Miran.

Miran, asked whether China could do a deal with the US involving investing in American factories, said “it remains to be seen whether they’d be willing to. China’s policy has been to steal all the manufacturing market share for themselves — not only from the United States but from many of our trading partners. It seems to me unlikely that China would be willing to make that concession up-front.”

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