The Mornia with Maria panel discusses a new report by the Council of Economic Advisors, which shows that import prices fall from President Donald Trump’s second term, contrary to claims that tariffs are stimulating inflation.
First of Fox: New report from the Council of Economic Advisors (CEA) revealed that the prices of imported goods fell this year and dipped faster than Overall prices of goods Since February.
CEA, an agency within the president’s executive office, said its findings are contrary to claims that the Trump administration tariffs for many countries Throughout the world or fears caused by taxes will lead to inflation.
The report breaks down the cost of personal consumption costs (PCE), which is an inflation meter viewed by the federal reserves and financial markets, and the consumer pricing index (CPI), which is an inflation meter commonly used by the public, in imported and home components.
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President Donald Trump holds a “reciprocal tariff” table while talking in the Rose Garden at the White House on April 2, 2025. (CHIP Somodevilla / Getty Images)
All the prices of the goods in the PCE index jumped by 0.4% from December to May, which corresponds to an annual rate of 1%, according to CEA report. Meanwhile, the imported component of PCE goods prices fell by 0.1% for the same period of time.
“CEA’s national findings using this method of analyzing the PCE are consistent through basic products (with the exception of food and energy), durable (lasting at least three years) and powerless,” the report said. “Inflation import contribution also includes direct impact on imported final consumption goods and indirect effects of imported medium inputs.”
The report says a similar analysis of CPI showed that imported goods dipped 0.8%, while total goods prices remained flat.
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Steven Miran, president of the Council of Economic Advisors, speaks during the US Capitol forum “Hill and Valley” on April 30, 2025. (Getty pictures)
There are several differences between the inflation of the POC and CPI, such as the volume of the weighted products and methodologies, according to a report, which claims that finding a similar CPI scheme highlights the stability of the results.
CEA’s report said he compared the imported subdex with total prices from December to May to capture the effects of the president Donald Trump Policies in his second administration.
“The results clearly show that the price of imported components is decreasing, starting in March, while the total prices were close to unchanged or increased slightly,” the report said. “Cumulatively, total PCE prices have increased by about 1.1% since December compared to about 0.2% for PCE import prices. However, those values include prices for services that tend to have less import intensity, so divergence may be due to the prices of service service.”
Steven Miran in front of the White House on June 17, 2025. (Getty pictures)
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CEA also acknowledged that her analysis “did not identify the counterfeit in which no tariffs were introduced”.
“The goods and prices of imported goods began to vary in late 2023 and have continued since then,” the report said. “More importantly, there is no clear pause for a trend so far. This analysis suggests that tariffs have not reduced the disinfecting impulse from the imported goods in May.”
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