Bloomberg
Why Krugman Thinks We Need Chinese Auto Tariffs
Saturday, June 27, 2026
Title: Krugman and Others Debate Tariffs as USMCA Renegotiations Begin
The United States, Canada, and Mexico are preparing to renegotiate the USMCA trade deal, with automobiles a central issue. Economist Paul Krugman has stated that trade barriers against Chinese competition may be necessary, while Council on Foreign Relations expert Shannon O'Neil has stated that the region's manufacturing relies on cross-border production. Companies like Linamar operate integrated supply chains that send components across borders multiple times during vehicle production. Supporters of the agreement say uncertainty about tariffs poses risks to investment and jobs, noting the deal supports over a trillion dollars in annual commerce.