The DSR Network Best of the Daily Blast: Paul Krugman Brutally Wrecks Trump’s Europe Deal: “Scam on His Voters”
Aug 8, 2025
Paul Krugman, a renowned economist known for his incisive critiques, dives into the problematic trade deal between Trump and the EU. He exposes the deal as a mere facade, highlighting its potential to burden lower-income Americans and undermine U.S. manufacturing. Krugman argues that the so-called concessions from Europe are misleading and warns of the media’s failure to accurately convey Trump's economic missteps. He presents a compelling case for the actual implications of these policies, revealing the disconnect between political promises and economic reality.
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Tariff Burden Falls on US Consumers
- The 15% tariff on most European imports will largely be paid by U.S. consumers, not the Europeans.
- This tariff acts like a sales tax raising prices on many goods Americans buy.
Income Redistribution Harms Low-Income People
- Tariffs and tax cuts together redistribute income upward from low-income to high-income people.
- The policy package effectively burdens lower-income individuals, especially with increased prices on basics.
Deal Tilts Against US Manufacturing
- The deal imposes tariffs on many essential imports like cars, machinery, and agricultural products from Europe.
- It actually disadvantages US manufacturing compared to Canada and Europe, tilting the playing field against domestic producers.