Paul Krugman says Trump facing ‘self-inflicted disaster’ amid trade war
Share and Follow


Nobel laureate Paul Krugman said in a Friday post on Substack that President Trump is facing “self-inflicted disaster” amid his global trade war.

“One crucial thing to understand is that Trump is facing a completely self-inflicted disaster here,” Krugman said in the post. “He probably could have gotten Republicans in Congress to vote for insane trade policy. But he was impatient, and wanted to start ruling as a dictator right away.”

On Friday, Trump criticized a federal appeals court decision that went against the administration’s claims that the president’s emergency powers justify his expansive tariff agenda.

The ruling backed up a lower court opinion that the tariffs were not allowed via the International Emergency Economic Powers Act (IEEPA).

Trump defended the steep tariffs as needed on his Truth Social platform, adding that “ALL TARIFFS ARE STILL IN EFFECT!”

“Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end,” Trump said. “If these Tariffs ever went away, it would be a total disaster for the Country.”

Krugman said in his Substack that “the International Economic Emergency Powers Act gives the president substantial room to set tariffs during an, um, economic emergency.”

“But Trump himself keeps saying that the economy is in wonderful shape, booming without inflation, and any claims to the contrary are fake news. So how can things both be terrific and an emergency calling for drastic action?”

The Hill has reached out to the White House for comment.

Copyright 2025 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Share and Follow
You May Also Like

Portland Resident Challenges Oregon Democrats’ Views on Rioters with Strong Statement

One of the rationales Oregon Democrats have been using to push back…

Abbott bolstering security around Texas religious spaces

Texas Gov. Greg Abbott (R) directed law enforcement in his state to…

Watch live: Trump gives announcement amid battle over drug prices

President Trump is expected to give an announcement on Tuesday from the…

Wiki Co-Founder Larry Sanger Claims to Tucker Carlson that Breitbart News is Banned on the Site

Wikipedia co-founder Larry Sanger told Tucker Carlson during Monday’s episode of The Tucker Carlson…

Trump, Hegseth rally generals to fight culture wars; shutdown nears

12:30 Report is The Hill’s midday newsletter. Subscribe here. It’s Tuesday. Enjoy your…

“Justice Delayed: DOJ Sues LA County Over CCW Application Delays”

The Trump administration Justice Department is suing the Los Angeles County Sheriff’s…

How “Peace Through Strength” is Proving Effective

Bold leadership. Unwavering resolve. Decisive action. President Trump and his administration are…

Pope Leo XIV: Support for death penalty is 'not really pro-life'

Pope Leo XIV criticized supporters of the death penalty on Tuesday, saying…