President Donald Trump’s unpredictable tariff decisions, Nobel laureate Paul Krugman has boldly declared that anyone who believes Trump’s economic policies are effective “should be kept away from sharp objects and banned from operating heavy machinery.”
Writing on Substack, Krugman didn’t hold back as he called Trump’s handling of tariffs “stupid, erratic, and weak.” The economist warned that Trump’s recent shift in tariff strategy – which includes a 10% tariff on all countries and an eye-popping 125% tariff on China – is far from an improvement. In fact, Krugman suggests that the U.S. economy is still teetering on the edge of a major financial crisis due to the uncertainty created by Trump’s erratic policies.
“This isn’t a resolution,” Krugman writes. “The pause is for 90 days. After that? No one, including Trump, knows what will happen.” He argues that the global uncertainty surrounding Trump’s moves is just as damaging as the tariffs themselves. For businesses, the idea of committing to long-term investments or major decisions in such an unpredictable environment is unthinkable.
Krugman points to research showing that even tariffs lighter than Trump’s proposal could trigger severe economic shocks. He also criticizes the administration’s reliance on a model that has already been proven inaccurate, stating that Trump’s post-pause tariffs will likely cause the largest trade disruption in U.S. and global history.
Notable economists, including University of Chicago professor Brent Neiman and former U.S. Treasury Secretary Janet Yellen, have joined Krugman in condemning Trump’s tariff policies. Yellen called it “the worst self-inflicted wound” she has ever seen imposed on a well-functioning economy.
As the debate over Trump’s economic legacy rages on, Krugman’s comments serve as a stark reminder of the ongoing risk posed by the president’s unpredictable trade policies.
