The DSR Network Best of the Daily Blast: Paul Krugman Brutally Wrecks Trump’s Europe Deal: “Scam on His Voters”
Jan 2, 2026
Paul Krugman, a Nobel Prize-winning economist and New York Times columnist, dives deep into the recent U.S.–EU trade deal touted by President Trump. He dismantles the narrative of a big win, revealing that the deal is laden with illusory concessions that chiefly burden lower-income consumers. Krugman argues it’s a scam targeting Trump's own supporters, highlighting how the structure of tariffs could harm U.S. manufacturing. He critiques media portrayal of the deal and underscores the unrealistic $600 billion investment promises.
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Tariff Costs Land On U.S. Consumers
- The 15% tariff on European imports will largely be paid by U.S. consumers rather than Europeans.
- Paul Krugman warns this functions like a sales tax that hits lower-income people hardest.
Deal Widens Inequality
- The tariff package redistributes income upward through tax cuts for the wealthy and benefit cuts for low-income people.
- Krugman says trade policy here is part of a broader upward redistribution agenda.
Inputs For U.S. Manufacturing Rise
- Many intermediate goods and machinery used in U.S. production come from Europe and will face higher costs.
- Krugman argues the deal tilts the playing field against U.S. manufacturing by raising input costs.