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Krugman says Trump's trade threats have left him despised but not feared

Nobel economist Paul Krugman argues that Donald Trump's attempts to coerce Canada and threaten Europe have backfired, resulting in widespread dislike without the intended fear.

According to Paul Krugman, Donald Trump's strategy of pressuring Canada and threatening Europe over trade has produced the opposite of his goals. Ursula von der Leyen announced the EU’s willingness to consider Canada as an associate member, a proposal that Canadian Prime Minister Mark Carney quickly supported. Trump reacted angrily, labeling the step a hostile act and threatening to halt all European trade, but the response was largely ignored.

Krugman references Machiavelli to argue that Trump now embodies the hated but not feared ruler Machiavelli warned against. He highlights a steep drop in global confidence in the United States and domestic polls showing a majority of Americans strongly disapprove of Trump. The analyst also links the shift to the fallout from the Iran episode and the looming Democratic control of Congress, noting that even business sectors remain silent despite potential trade war damage.

Why it matters

The analysis shows how Trump's foreign-policy tactics may be weakening U.S. influence and reshaping global trade dynamics.

In this story

TrumpCanadaEU associate membershiptrade warpublic opinionMachiavelliPaul KrugmanIran debacle
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