Nobel Prize-winning economist Paul Krugman has delivered a scathing critique of former U.S. President Donald Trump's latest international policy maneuver, calling it potentially his "stupidest" yet. The analysis, published in Krugman's Substack newsletter this past weekend, centers on Trump's renewed and "weird" fixation on acquiring Greenland and the retaliatory tariffs he has threatened against European allies.
The Greenland Obsession and a Tariff Threat
Krugman outlines how Trump's longstanding desire to purchase the semiautonomous Danish territory of Greenland has taken a bizarre new turn. The economist notes that Trump has now threatened to impose tariffs on eight European nations. The reason for this threat? Those countries have deployed troops to Greenland as a defensive "tripwire" measure.
This military presence, Krugman explains, is essentially a precaution against the possibility of U.S. forces under Trump's command opening fire on allied troops. The tariff threat, therefore, emerges directly from Trump's frustration over being blocked from a more aggressive action regarding the Arctic island.
A 'Howl of Frustration' from a Mad Dictator
In his characteristically blunt style, Krugman interprets the economic threat as a profound sign of weakness. He argues the tariff announcement is "basically a howl of frustration on the part of a mad dictator who has just realized that he can’t send in the Marines."
This move, according to Krugman, reveals the limits of Trump's power when faced with logical international pushback. Instead of achieving a dramatic military or diplomatic acquisition, he is left lashing out with trade penalties, a tool he frequently employs but one that carries significant collateral damage.
The Unreliability of Trump's Deals
Krugman also seizes on this incident to highlight a critical flaw in dealing with the former president: the utter lack of trustworthiness. He points out that the European nations now facing tariffs had previously negotiated trade agreements with Trump's administration.
This situation proves, Krugman states, that "a deal with Trump lasts until he feels like breaking it." The episode serves as a stark warning to any nation or entity that believes a signed agreement with Trump holds lasting value, as his decisions appear driven by personal whims and immediate frustrations rather than long-term strategy or honouring commitments.
The full analysis, which delves deeper into the economic and geopolitical implications of this stance, is available on Paul Krugman's Substack platform. The commentary reinforces concerns among allies about the volatility and unpredictability that defined much of Trump's foreign policy and economic approach.
