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

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.