Paul Krugman: “Anyone sounding the all-clear on tariffs, or Trump economic policy in general, should be kept away from sharp objects and banned from operating heavy machinery. We’re in a hardly better place than we were before Donald Trump announced a tariff pause (in a Truth Social post, of course.) In fact, we may be in a worse place.”
Here’s why:
- Even the post-pause tariff rates represent a huge protectionist shock.
- Destructive uncertainty about future policy has increased.
- We’re still at risk of a major financial crisis.
- The world now knows that Trump is weak as well as erratic.

