Nobel Laureate and US economist Paul Krugman has slammed the Trump administration’s imposition of 37% reciprocal tariffs on all imports from Bangladesh – including its clothing industry, the country’s largest foreign currency earner – calling the move counterproductive and harmful to American consumers.
“Putting high tariffs on imports of clothing from Bangladesh is exactly what you shouldn’t be doing,” Krugman said in an interview with The New York Times.
“That’s the kind of thing that is disruptive, raises the cost of living for American consumers, [and] does nothing to make us more secure.”
At a White House event on April 2, US President Donald Trump announced a 10% baseline tariff for all countries, along with country-specific reciprocal tariffs based on America’s trade deficits — including 26% for India, 46% for Vietnam, and 47% for Cambodia.
Set to take effect on April 9, the new tariffs have triggered a global financial market bloodbath, wiping out trillions in value and sending shockwaves through manufacturing sectors worldwide.
The US economist argued that such measures do not contribute to national security and instead increase the financial burden on citizens.
“There is a national security rationale for domestic production, but also for friendshoring and for nearshoring, because the stuff that’s close by is a lot easier to secure,” he said.
“If that’s what we were wanting to do, then we would not be levying tariffs on Vietnam and Bangladesh, and we would certainly not be putting tariffs on Canada and Mexico.”