Krugman warns Trump's tariffs could hurt economy, escalate conflict

In the United States, former President Donald Trump has put forth a proposal for steep import tariffs, including a staggering 60% tax on Chinese goods. This marks a significant continuation of his earlier trade policies that employed heavy tariffs to impact international trade dynamics. Economists, including Nobel laureate Paul Krugman, have strongly criticized Trump's tariff plans, warning that they could lead to harmful economic consequences, including increased living costs and a risk of rekindling global conflict. Krugman has articulated concerns that such tariffs would not reduce the U.S. trade deficit or stimulate domestic manufacturing, but rather could shrink the economy. These proposed tariffs evoke memories of historic tariff policies, specifically the Smoot-Hawley Tariff Act, which previously contributed to economic downturns. Experts are unified in stating that such measures disproportionately affect middle- and lower-income families, potentially raising living costs by 3 to 4 percent on average.