Nobel Prize-winning economist Paul Krugman has declared the U.S. trade conflict with China a strategic misstep, arguing that Washington sacrificed long-term global credibility for short-term political wins. In a recent MSNBC interview, Krugman framed the dispute as a battle of resolve where America "appears to have backed down," weakening its technological leadership and diplomatic influence.
"China retains flexibility to diversify markets and supply chains, while the U.S. faces structural hurdles like rebuilding rare-earth mineral capabilities," Krugman noted. He criticized former U.S. President Donald Trump\u2019s approach, citing tariffs on allies like Canada as counterproductive moves that eroded international trust.
The analysis highlights shifting economic dynamics in Asia, where China\u2019s adaptive strategies contrast with U.S. constraints. For investors and policymakers, Krugman\u2019s warnings underscore the need to reassess supply chain risks and geopolitical alignments in a multipolar trade landscape.
