Miran’s economic strategy to Donald Trump, one must embrace his belief in tariffs as a means to bolster the U.S. economy. Few economists share this view, but Stephen Miran stands out as a staunch advocate for such policies. As the newly appointed head of Trump’s Council of Economic Advisers, Miran has proposed that the U.S. could thrive with tariffs ranging from 20% to 50%, far exceeding the current 2%.
Addressing Global Imbalances
Miran believes tariffs and actions to weaken the dollar can address a long-standing global imbalance. He argues U.S. military support abroad has contributed to an overvalued dollar, trade deficits, and a weakened industrial base. Miran suggests the U.S. should impose tariffs to shift away from a strong-dollar policy. He claims this approach would address the challenges the country faces. His strategy focuses on restoring balance in the global economy.
A Bold Report with Global Implications
In a 2020 report for Hudson Bay Capital, Miran described how “sweeping tariffs and a departure from strong-dollar policy could reshape global trade and financial systems.” His bold vision presents the possibility of a transformative shift in international economic relations, though it is still his personal opinion rather than Trump’s official position.

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Educational Background and Economic Foundation
Miran, a Harvard-educated economist with a Ph.D., has worked in finance and as a fellow at the Manhattan Institute. Nevertheless, his unconventional proposals stay grounded in traditional economic principles. Moreover, Harvard economist David Cutler confirms that Miran adheres to economic theory and evidence. As a result, his approach is well-supported by academic foundations. Therefore, Miran’s ideas combine both innovation and rigorous economic theory.
The Feasibility of Miran’s Vision
While Miran’s ideas are thought-provoking, their implementation remains uncertain. He recognizes the potential risks involved, acknowledging that while his policies could work, they are not without drawbacks. Free trade, long considered beneficial for national economies, may be challenged by his tariff strategy, which economists debate could be problematic in practice.
Risks of Retaliatory Tariffs
Miran suggests a tariff rate of around 20%, up to 50%, could be beneficial for the U.S., differing from Trump’s use of tariffs as a negotiation tactic. However, experts like Dartmouth’s Doug Irwin warn that retaliatory tariffs from nations such as China or the EU could undercut the advantages. Miran also proposes leveraging U.S. defense commitments to pressure allies, but this could jeopardize international trust in the U.S. defense guarantees.
The Dollar and the Trade Deficit
A major challenge to Miran’s vision is tariffs failing to reduce the trade deficit. A stronger dollar could undermine it. The stronger dollar would make imports cheaper and exports less competitive. To address this, Miran proposes an international effort to devalue the dollar. He suggests a global tariff reduction similar to the 1985 Plaza Accord.
A Political Agenda Linked to Monetary Policy
Miran’s proposals also include financial policy changes. He suggests imposing fees on Treasury debt buyers to prompt Federal Reserve intervention. This would allow more direct presidential influence over monetary policy. It aligns with Trump’s broader political agenda.
Unpredictability and Geopolitical Challenges
Miran’s approach will be tested by geopolitical responses. The U.S. lacks defense agreements with key trade partners like Mexico. This limits defense leverage in trade talks with countries like Vietnam and China. Additionally, Trump’s foreign policy statements complicate international relations further.
Miran’s proposals offer an ambitious vision for reshaping U.S. economic policy, but they face considerable obstacles—both domestically and on the global stage, according to wsj deals.
