THE DAILY BLAST with Greg Sargent Best of the Daily Blast: Paul Krugman Brutally Wrecks Trump’s Europe Deal: “Scam on His Voters”
Aug 8, 2025
Join economist Paul Krugman, known for his incisive critiques and thought-provoking analyses, as he rips into Trump's celebrated trade deal with the EU. He exposes Europe’s concessions as mere illusions, asserting that the deal won't enhance U.S. manufacturing but will indeed hike prices for consumers, especially lower-income voters. Krugman also scrutinizes the media's failure to report on the true incompetence behind these policies, suggesting it’s a grand 'scam' on Trump’s supporters, rather than a significant win for America.
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Tariff Is A Cost To US Consumers
- The 15% tariff on most European imports acts as a sales tax on American consumers.
- Europeans do not pay the tariff; U.S. businesses and consumers bear the cost.
Tariffs Hurt Low-Income Voters Most
- Tariffs disproportionately harm lower-income Americans who spend more on affected goods like clothing.
- Tax cuts in the package benefit only high-income people while cutting aid to the poor.
Trade Deal Tilts Against U.S. Manufacturing
- U.S. tariffs on European cars are 15%, but cars from Canada pay 25%, despite American parts in Canadian cars.
- This tilts the field against U.S. manufacturing and makes Germany a more attractive place to build cars.