Trump Shifts Focus From Inflation to Immigration: What It Means for Prices/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ In his first week back in office, Donald Trump emphasized immigration over inflation as his top priority, despite earlier campaign promises to lower consumer prices. While proposing measures to boost energy production, Trump has faced criticism for the lack of direct inflation-focused actions. Experts warn that some of his policies, like tariffs and deportations, could increase costs instead of reducing them.
Trump’s Inflation Approach: Quick Looks
- Shift in Priorities: Trump identifies immigration, not inflation, as his primary issue in office.
- Energy Focus: Plans to increase oil production aim to lower energy costs and ripple through the economy.
- Consumer Price Trends: Inflation peaked in 2022 but remains a concern as prices recently ticked up.
- Expert Concerns: Economists warn that tariffs and immigration crackdowns could counteract inflation relief efforts.
- Democratic Criticism: Democrats argue Trump is distracting from economic issues to favor elite interests.
Trump Shifts Focus From Inflation to Immigration: What It Means for Prices
Deep Look
In his first week back in the White House, President Donald Trump has prioritized immigration reform over inflation, a decision that has sparked criticism from both political opponents and economic analysts.
While Trump acknowledged inflation as a campaign issue, he told NBC’s Meet the Press that immigration is his “No. 1 issue,” adding, “How many times can you say that an apple has doubled in cost?”
This shift comes despite earlier campaign rhetoric focusing on the high cost of groceries and household goods, which Trump blamed on his predecessor, Joe Biden. Inflation peaked at 9.1% in June 2022, fueled by pandemic-driven supply chain disruptions. While prices have moderated since, they remain elevated, with consumer prices rising from 2.4% in September 2024 to 2.9% in December.
Energy Policies and Inflation
Trump’s approach to inflation centers on energy production, which he argues will drive broader economic relief. His administration has pledged to reduce regulations and open additional land for oil drilling. Domestic oil production, which currently averages nearly 13.5 million barrels per day, could increase by another 3 million barrels annually, according to some projections. However, achieving such growth within a year would require significant global market adjustments.
EJ Antoni, a research fellow at the Heritage Foundation, supports the plan, saying, “If you’re going to bring down the cost of energy, you’re going to bring down the cost of all kinds of goods and services.”
Nevertheless, critics note potential risks. Trump’s emphasis on fossil fuels and opposition to renewable energy like wind and solar could limit long-term sustainability. Additionally, efforts to pressure oil-producing nations to increase output may face resistance due to their profit considerations.
Economic Trade-Offs
Some of Trump’s broader policies could inadvertently raise consumer costs. For example:
- Tariffs: Taxes on foreign imports may be passed on to consumers, driving up prices.
- Deportations: Reducing the availability of low-wage migrant workers could lead to labor shortages and higher costs in industries like agriculture and construction.
Vice President JD Vance defended the administration’s plans on CBS’s Face the Nation, stating, “Prices are going to come down, but it’s going to take a little bit of time. Rome wasn’t built in a day.”
Democratic Criticism
Democrats have seized on Trump’s apparent lack of direct action on inflation to challenge his economic priorities. Sen. Chris Murphy (D-Conn.) accused the president of distracting voters with grandiose proposals, like acquiring Greenland or seizing the Panama Canal, instead of addressing everyday concerns.
“It’s catnip,” Murphy said. “It causes everybody to stop paying attention to their actual economic agenda, which has nothing to do with lowering costs and everything to do with rigging the economy to help the Mar-a-Lago crowd.”
Pressure on the Federal Reserve
Trump has suggested he may publicly pressure the Federal Reserve to lower interest rates, arguing that increased oil production will stabilize prices enough to justify cuts. However, the Fed values its independence and has been cautious about reducing rates too quickly to avoid reigniting inflationary pressures.
During a Fox News interview, host Sean Hannity pressed Trump to address inflation directly. Trump responded with optimism, saying, “The economy is going to do great,” while also claiming prices wouldn’t have risen had he remained president after 2020.
Despite his confidence, Trump has yet to clarify how he will persuade oil companies and foreign nations to boost production at the expense of their own profits. Analysts warn that the combination of ambitious energy policies, protectionist tariffs, and labor-market disruptions could create new inflationary pressures rather than alleviating them.
