Trump presented the award to Laffer, the co-author of a book called Trumponomics: Inside the America First Plan to Revive Our Economy in a ceremony in the Oval Office on Wednesday afternoon.
Laffer is known as the father of supply-side economics, the theory that economic growth can be boosted by cuts to taxes and regulations.
"Few people in history have revolutionized economic theory like Arthur Laffer," Trump said. "I've heard and studied the Laffer curve for many years. A very important thing you did."