Trump Tariffs Drive Inflation? Big Short's Steve Eisman Says That's 'Ridiculous'

Steve Eisman, best known for his “Big Short” bet against subprime mortgages, said that the idea tariffs imposed by Donald Trump will drive up inflation is “ridiculous.”

The Neuberger Berman Group portfolio manager said in a Bloomberg TV interview on Tuesday that he expects that if Donald Trump is re-elected as president, he will impose tariffs on goods from China. But he does not believe that higher import duties will increase inflation.

“Do I think that Donald Trump will increase tariffs on China? Sure. Do I think that would have a massively inflationary impact on the U.S.? I think that’s ridiculous,” Eisman said.

President Donald Trump has said he is considering tariffs on almost all imported goods. He has also said he plans to raise the tariffs he imposed on Chinese goods. Critics charge that these would moves would raise consumer prices, although recent history shows that the earlier round of tariffs did not raise consumer prices.

Eisman bet against mortgages during the housing bubble. He was played by Steve Carrell in the film “The Big Short.”