Krugman Calls Trump Tariffs 'Really, Really Destructive'

Nobel laureate Paul Krugman, a distinguished professor at the City University of New York, discusses the global impact of President Donald Trump's tariffs. Speaking on "Bloomberg The Close," Krugman says Trump's tariffs are like "throwing sand in the gears of international commerce and manufacturing."

00:00 Paul Krugman
00:30 Krugman on Trump tariffs
2:10 what's changing with tariffs
3:22 Krugman on Trump policies
4:04 Krugman: we're not going to have a war with Canada or Mexico

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[DarkXcb]

Im an importer. The corporate media has done a lousy job of explaining to Americans how tariffs are a tax on US consumers. When our company imports products from any country including China any tariffs are added on to our cost of goods and passed on to the consumer. It's really no more simpler than that. Americans really need to educate themselves better.

[jeffDwyer]

Tariffs will increase costs of finished goods and components used throughout US manufacturing. This will be an immediate and huge hike in inflation. To fight inflation the Fed will have to hike interest rates which will be wonderful for the billionaires but possibly take away the middle class. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[johnwright]

The last time Trump imposed tariffs the added cost was passed on to consumers and his boasts to pay off the Federal debt proved empty. His tax cuts for the wealthy and corporations increased the debt by a third. Expect worse.

[philiplee]

Trump is disrespectful, and arrogant to call Canada the 51'st state. Never, we're proud to be Canadians.
Canada is a sovereign country and we will stand united to fight tariffs.

[orhanbukic]

Remember, you're dealing with a guy who managed to bankrupt a casino. That's extremely difficult. Now he's trying it with an entire country.

[GoogleUser-wfbn]

I can't believe we live in a country where we have to explain that consumers pay for tarrifs.

We're living in the dumbest timeline.

[RegB]

It amazes me that Americans do not seem to understand how much damage has been done to the way Canadians view Americans. We always viewed Americans as friends, relatives, kin, allies and yes, competitors as well. This has now largely changed. Many Canadians now view America as no longer an ally but an adversary. Enemy may be too strong a word as of yet, but it is not far off from the current reality of Canadian/American relations. Trust is gone. We have seen what happens to bordering countries when stronger fascist countries decide they want to expand their territory. Most recently Russian's Putin and what is happening to Ukraine as well as remembering images of what happened to those countries bordering Germany during the Second World War. Americans need to understand these are the things Canadians are thinking about, and for good reason. No matter how this turns out, I doubt that Canadians will be able to trust America again. You have to remember, this is what a vast number of Americans voted for and are cheering it on. The anger in much of Canada is palpable. If we go down, we will go down fighting. I cannot help but feel sad that it has come to this.

[mikefidlermswrsw]

I am relieved that he admits that Trumps issues with Canada are not real. They are there to fulfill Trumps indirect taxation system.

[E.J-fh]

Tariffs are consumption taxes…….paid by American consumers …….the added costs cause inflation

[maruka]

With Trump and his ilk, we should always assume a grift. Put tariffs on everyone, but give exemptions to people who give Trump money.

[RandomDogLover]

What is the logic of Trump wanting to bring back manufacturing in the US while the US have full employment and is planning to expel 10 million illegal immigrants causing a labor shortage also Trump attacking Canada is strange I think it's a personal vendetta he thinks the US can do without the oil, lumber and cars from Canada but he fails to notice that Canada is the US best customer, hurting Canada is stupid in this regard .

[erik]

Finally some voice of reason. Tariffs as means of making things “made in America” just for its own sake is stupid. Countries have to specialize in what they do best that is why we have global commerce. No country can make everything. Hence cooperation is key. Also those tariffs will not make America richer. Most people will end up picking up the bill and the middle class will be no more.

[grantgingrich]

Canadian here... while no one wants to see a trade war that would harm both our economies, we Canadians must stick up for ourselves. Your president's repeated insults are profoundly disrespectful of a country that has consistently had the US's back since WWI, and only serve to strengthen our resolve. Art of the deal or game of economic chicken... it would be naive to think we won't respond in kind to threatened US tariffs; and understand that 36 states rely on Canada as their #1 export market. Does yours? So this is going to hurt right back. Double the pain actually, with US tariff-induced inflation, plus the loss of US jobs as your top export market implements its own retaliatory tariffs. Party like it's 1929! Also, if you exclude oil, there is no trade deficit... the US is in surplus on goods and services so who's "subsidizing" who exactly? As in any relationship, of course there are disputes, but big picture: we have a level playing field between our two countries and this is a completely unwarranted provocation that will only serve to kneecap both our economies. The saddest thing about it is that we are not only neighbours, but we are (used to be?) each other's' best friend and ally; capable of accomplishing tremendous things when we work together. This chaos is exactly what China and Russia want... far easier and far more productive to simply work with your allies in the first place. Miss our old friend.

[fleurgreen]

Thank you sweet heaven for Paul Krugman! Intelligent talk is very helpful.

[davidyemm]

I don't think the general public has any idea how much of our produce comes from Mexico and other countries.

[wondereagle]

Can’t believe we have to go through this again.

[davidcamacho]

Imposing tariffs on foreign companies is just imposing tariff on the US consumer. Doh!

[susanvannorden]

Trump can barely read, you think he has thought any of this out?

[bugzeye]

Trump tarrifs would be really really self destructive and stupid.

[davidwaskul]

Let the tariffs games begin. The professor knows his stuff and explains as simply as he can. We must tighten our belts and hope we all ain't swallowed up by this "Tariff War."