Liberal economist Paul Krugman is finally discovering what President Trump warned about for years—that unchecked Chinese trade hollows out Western industry. In a recent Bloomberg Television interview, Krugman said conditional tariffs on Chinese cars are “probably going to be necessary” in Europe, arguing that they cannot allow its auto industry to be wiped out by Beijing-backed competition.
That is a remarkable shift from one of the left’s most prominent voices for neoliberal free trade. Krugman has repeatedly attacked President Trump’s tariff agenda, calling parts of it chaotic, illegal, and economically misguided. But when it comes to Chinese vehicles flooding Western markets, even Krugman now admits the old globalization playbook no longer works.
Krugman cautioned against completely shutting Chinese cars out, however, saying that could hurt consumers. But he also said national security and massive market disruption from the red menace cannot be ignored, especially when an industry as important as autos is at stake. This is vindication for how President Trump has shifted the Overton Window on trade.
Tariffs are now on the table on a global basis as the economic elites are forced to admit their effectiveness. President Trump was able to articulate this reality as the establishment was in the tank for China. But now that the public has soured on Chinese dominance, they are forced to change their tune. Beijing has always used subsidies, industrial policy, slave labor, and devious strategic pressure to dominate critical sectors — from electric vehicles to batteries, software, and manufacturing.
The choice is not between free trade and protectionism. The real choice is between defending American and Western industry or surrendering it to the evil aims of the totalitarian and repressive Chinese Communist Party. Krugman may not say it directly, but his message is an endorsement of President Trump’s economic policies. President Trump was right to take China seriously, and it cannot be denied any longer.
