Peter Navarro to Newsmax: MAGA-Nomics Cures Inflation, Lifts GDP

Peter Navarro told Newsmax on Friday that "MAGA-nomics" is driving an economic growth rebound and "curing" former president Joe Biden's inflation, as the Atlanta Fed’s GDPNow model jumped to a 5%-plus estimate for late 2025.

Navarro, the senior White House counselor for trade and manufacturing, credited President Donald Trump’s tariffs, tax policy, and energy agenda for a sharp change in economic momentum during an appearance on Newsmax’s "Rob Schmitt Tonight."

Navarro’s comments came as the Federal Reserve Bank of Atlanta’s GDPNow model marked a rapid swing higher for fourth-quarter 2025 growth. The Atlanta Fed said its estimate was 5.4% on Jan. 8 and 5.1% on Jan. 9.

"Just keep telling us the good news there," Navarro said after being asked about the 5.4% figure. "It’s MAGA-nomics. I like to call it Trump-nomics, but it was called MAGA-nomics. All good."

He pointed first to trade. "Imports down, exports up. Best numbers since 2009," Navarro said, adding a jobs claim he said flows from a smaller deficit: "For every $1 billion we reduce the trade deficit, it’s 6,000 new jobs or jobs that we create or protect."

"This shows what happens when you have a president who doesn’t let the world cheat you anymore," Navarro said.

On growth, Navarro said the estimate was being pushed by investment he tied to tariffs and tax changes.

He described "this huge multitrillion-dollar influx of investment, not just from foreign companies, but also domestically," and said it was "in response, foreign to the tariffs, domestically, to the tax bill," including "100% depreciation," "a total investment boom," and "construction boom."

Navarro also pointed to equities.

Recalling a market slide earlier in the year, he said he told critics, "Relax. 50,000 on the Dow. No problem." He added, "We’re at 49,000 now.

"I’m getting ready to take a victory lap."

The interview then turned to the Supreme Court fight over Trump’s tariff authority under the International Emergency Economic Powers Act.

Navarro said, "The decision is written. They just haven’t released it." He added, "We have plan B, C, and D."

Reuters has reported the court’s decision could shape presidential power over trade and that rulings are expected Jan. 14, with the tariff case still unresolved.

Navarro argued tariffs are reinforcing supply chains and security: "When we bring our supply chains home, we strengthen not just our manufacturing base, but our defense industrial base."

He tied inflation to energy, saying, "We inherited like $75, $80 barrel oil from Biden. It’s down to $50 now," and then framed the message he said the White House wants repeated: "Everything that Donald Trump does cures inflation.

"Everything that they [the Biden administration] did caused inflation. And that’s our mantra."

On housing, Navarro said, "President Trump did $200 billion on the mortgage-backed securities" and claimed it would "lower mortgage rates by a half or a quarter point."

Navarro added that Trump "is going to announce the full plan ban on institutional investors buying single-family homes," a proposal the administration has discussed publicly in recent days.

Reuters contributed to this report.

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