Trump Economic Advisor "May Not Need Trade Agreement With China… Must Endure Short-term Chaos"

Trump President's Chief Economic Advisor Stephen Miran (Source: Bloomberg)

Stephen Miran, Chief Economic Advisor to President Trump, emphasized that "a trade deal with China may not be essential," and that the U.S. economy must be prepared to endure short-term volatility. In an interview with the New York Times on the 10th (local time), Miran explained that "the volatility of the financial markets is intended shock therapy." During the first 100 days of the second term of the Trump administration, the U.S. economy has experienced significant volatility, but this is a strategic adjustment process.

He strongly supported President Trump's tariffs policy, evaluating it as a "historic measure to create a favorable trade environment for American workers." In fact, by imposing the highest level of tariffs since the 1930s, tensions have further escalated on the trade front with China.

Miran also asserted that "the President said, 'We can make a deal,' but at the same time said, 'A deal is not necessary,'" claiming that the two statements are not contradictory. He was confident that the fundamental competitiveness of the U.S. economy can be strengthened even without a trade agreement.

Miran, the Chief Economic Advisor, is also well-known as a person who proposed the 'Mar-a-Lago Agreement' idea inspired by the Plaza Accord. He presented a groundbreaking idea to solve the fiscal deficit issue by issuing a 100-year maturity U.S. treasury bond with no interest.

He explained that if the production environment is improved domestically, investment funds will naturally flow in, and that the △massive tax cuts △deregulation △trade policy restructuring that the Trump administration is pursuing will play an important role in the revival of manufacturing. He also emphasized the need to dismantle regulations, saying that "government regulations are blocking supply" regarding the housing crisis.

When some experts criticized the Trump administration's policies for prioritizing political objectives, Miran refuted, "It is only political bias. We are pursuing substantial reforms for a sustainable U.S. economy." He argued that it is more important to create long-term investment opportunities than to worry about short-term capital outflow.

He also suggested that "supply chain changes take time. Depending on the product, it may take several months, or even years," indicating that President Trump's trade policy is not a short-term fight but a long-term strategy with no retreat.

Miran's comments are interpreted as reflecting the Trump administration's confidence that the U.S. economy can be strengthened even without negotiations with China, and suggest the possibility that future trade policy will continue a tough stance.