'Destructive' tariffs are worst thing the US can do: Paul Krugman

Thu, Mar 6, 2025, 7:27 AM

The Trump medication granted a one-month exemption from tariffs to US automakers General Motors (GM), Ford (F), and Stellantis (STLA) connected Wednesday. Experts person forecasted that terms hikes tied to President Trump's tariffs against Canada and Mexico could thrust car prices higher by arsenic overmuch arsenic $12,000.

While cultivation products whitethorn besides soon gain exemptions, Trump's caller tariffs connected alloy and aluminum are scheduled to instrumentality effect March 12 with reciprocal levies besides acceptable to commencement April 2.

Paul Krugman, a Nobel Prize-winning economist, joins Morning Brief big Seana Smith to supply insights connected the imaginable economical of these tariffs.

"I mean the tariffs connected Canada and Mexico, if you had to take among places to person a commercialized warfare with, that would beryllium benignant of the worst due to the fact that determination truly is nary specified happening arsenic US manufacturing anymore. There's North American manufacturing," Krugman says, explaining the manufacturing narration betwixt American car companies and Mexico and Canada. "It's a profoundly integrated manufacturing analyzable that sprawls crossed some our bluish and our confederate border."

Krugman emphasizes that the uncertainty of on-again, off-again tariffs could frost decision-making for businesses: "This is almost... pessimal. It's astir the worst happening you tin bash is to person destructive tariffs that whitethorn oregon whitethorn not happen."

To ticker much adept insights and investigation connected the latest marketplace action, cheque retired much Morning Brief here.

This station was written by Josh Lynch