Bloomberg
Why Krugman Thinks We Need Chinese Auto Tariffs
Saturday, June 27, 2026
Title: Krugman and O'Neil Differ on Chinese Auto Tariffs as USMCA Renegotiation Begins
The United States, Canada, and Mexico are preparing to renegotiate the USMCA trade deal, with automobiles as a central issue. Paul Krugman has stated that competition from China requires trade barriers, while Shannon O'Neil of the Council on Foreign Relations has stated that the region's manufacturing strength depends on cross-border production. Companies like Linamar use supply chains that send components across borders multiple times before vehicles are completed. Supporters of the agreement say uncertainty poses risks to investment, jobs, and the trade relationship, which accounts for over a trillion dollars in annual commerce.