« I’m not sure he knows he is lying; he may be really ignorant »
Nobel laureate economist Paul Krugman attacked Donald Trump, describing his approach to trade as « completely crazy ».
Immediately after the announcement of the extreme tariff policy by the US president on April 2, Krugman wanted to make a quick information, expressing hope that the duties could eventually be lower when they were given further details, because they had otherwise given by the President.
As the award -winning economist said on an online platform, it was not only that Trump wanted to impose higher duties than anyone could expect, but « he also puts fake allegations for our commercial partners -I am not sure if they will be in this case,
According to Krugman’s analysis, one of the most controversial points in Trump’s speech was his claim that foreign countries impose disproportionately high duties on American products.
Focusing on the European Union, Krugman says that « the EU, like the United States, generally has low duties.
The average duty imposed by the EU on US products is less than 3%, ”he explains. « Where does this 39%come from? I have no idea. «
He also says that Donald Trump has repeated a long -term claim that the US is subsidizing Canada with $ 200 billion a year.
Economists have rejected this claim, noting that Trump misunderstanding trade surpluses as subsidies and overestimates the actual amount. Despite repeated corrections, the US president continued to put forward this claim.
« Too many have pointed out the mistake, but Trump insists on repeating it, » Krugman said.
The internationally renowned economist, called upon to answer a series of questions about the WBUR, points out that « there is a formal theory in the economy that says trade is good. »
The main reason is that countries are different and can exchanges to exploit their differences, while also contributing to peace and security and not just efficiency.
He emphasizes that the duty imposing program « is completely based on the view that not only should we not have a total commercial deficit, but that we should not have a trade deficit with any country. And that’s absurd. «
