Trump's actions prompt allies to move gold out of New York vaults

Paul Krugman contends that President Donald Trump's tenure has alienated key allies through tariffs, aggressive foreign policy, and disregard for international law. The economist points to recent actions by the Dutch and French central banks, which are shifting billions of dollars in gold from the Federal Reserve's New York vault to facilities in London and Paris. He explains that while the financial impact may be modest, the moves signal a loss of confidence in the United States' commitment to legal norms.

Krugman warns that restoring this trust will require many years of responsible governance, even after Trump's departure. The column underscores how the relocation of monetary gold reflects broader concerns about U.S. reliability on the world stage.