Krugman: Trump's tariffs are a disaster. His policy process is worse.

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https://paulkrugman.substack.com/p/will-careless-stupidity-kill-the

Will Malignant Stupidity Kill the World Economy?
Trump’s tariffs are a disaster. His policy process is worse.
Paul Krugman
Apr 03, 2025

America created the modern world trading system. The rules governing tariffs and the negotiating process that brought those tariffs down over time grew out of the Reciprocal Trade Agreements Act, devised by FDR in 1934. The growth in international trade under that system had some negative aspects but was on balance very good for America and the world. It was, in fact, one of our greatest policy achievements.

Yesterday Donald Trump burned it all down. Here’s what just happened to the average U.S. tariff rate:



The tariffs Trump announced were higher than almost anyone expected. This is a much bigger shock to the economy than the infamous Smoot-Hawley tariff of 1930, especially when you bear in mind that international trade is about three times as important now as it was then.

The size of the tariffs, however, wasn’t the only shocking thing about the Rose Garden announcement. Arguably what we learned about how the Trump team arrived at those tariff rates — the sheer malignant stupidity of the whole thing — was even worse.

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