Renowned economist Paul Krugman on Wednesday dismissed Donald Trump's threat to cut off all U.S. trade with Spain as 'completely crazy,' according to a video analysis shared on Substack.
Trump's Anger at Spain
Trump fumed about the European country during the NATO summit in Ankara, Turkey, calling it a 'wasted cause' and 'terrible partner in NATO.' The president has previously slammed Spain's refusal to increase defense spending to 5% of its economic output and for refusing to allow the U.S. to use jointly-operated air bases for his Iran war.
However, Krugman, winner of the 2008 Nobel Memorial Prize in Economic Sciences, declared that cutting off trade 'is not going to happen.'
Legal and Practical Barriers
Krugman, a vocal critic of Trump's economic policies, acknowledged that presidents 'have a lot of discretionary authority on tariffs and trade, more than they should' but said this particular move 'would not fly even in the Trump administration.'
A key obstacle is that Spain is part of the European Union, which the U.S. deals with instead of individual EU member states, Krugman noted. He also pointed out that the U.S. has a trade surplus with Spain, meaning 'U.S. business would be howling' at such a move.
