Peter Navarro, Trump's trade counselor, asserts that the planned tariffs will not cause inflation.

• Trump's advisor, Peter Navarro, stated that the planned tariffs and tax cuts will not increase inflation or federal deficits.
• During a CNBC "Squawk Box" interview, Navarro stated that inflation under the Biden administration was due to "fiscal irresponsibility."
• Trump has suggested several tax reductions, such as reducing the corporate tax rate and removing taxes on tips for service workers and Social Security benefits for seniors.

Despite warnings from some experts, Peter Navarro, who is set to become the top trade advisor to President-elect Donald Trump, argued Tuesday that Trump's plans for broad tariffs and steep tax cuts will not spur inflation or raise deficits.

Navarro said Trump's first term in the White House proved his point.

"Navarro stated on "Squawk Box" that we imposed substantial tariffs on China, steel, aluminum, dishwashers, and solar, as well as increased countervailing duties to stop dumping."

"We had zero inflation from any of that," he said.

During his first term, Trump imposed tariffs on China, which were maintained by President Joe Biden's administration.

Navarro stated that one should rewatch the CNBC interviews featuring people during the first term, with their hair on fire and concerns about inflation.

The 75-year-old China hawk stated that it never happened and it's the same movie this time.

In December, Trump appointed Navarro as his senior counselor for trade and manufacturing, and he claimed that the inflation that persisted during Biden's term was due to "fiscal irresponsibility."

Trump stated during his campaign that he intended to implement broader and larger tariffs, as well as additional targeted duties on imports from China.

He has issued additional tariff threats on Mexico and Canada since winning the election.

Trump has proposed tax cuts, such as lowering the corporate tax rate and eliminating taxes on tips for service workers and Social Security benefits for seniors.

He has pledged to continue tax cuts from his first term, some of which will expire in 2025.

During Trump's first term, the national debt grew, reaching a level that was already high before the Covid-19 pandemic hit in 2020.

Navarro on Tuesday pointed to the example of the first administration when asked how Trump plans to control deficits while cutting taxes.

Before the pandemic, the U.S. economy was steadily gaining strength, according to Navarro.

If the fourth year had been clean without the pandemic, the fiscal picture at the end of the first term would have been much different, he said.

Navarro predicted that economic growth in the next term will result from increasing domestic oil-drilling activities, and stated that there will be significant cost savings within the government due to this move.

He emphasized the importance of responsible fiscal management and wise Fed policies to ensure the American people can afford their necessities.