Bloomberg Talks Nobel Laureate in Economics and Professor of Economics Paul Krugman Talks SCOTUS
Feb 21, 2026
Paul Krugman, Nobel Prize–winning economist and CUNY professor known for trade and clear policy commentary. He breaks down tariffs as a de facto sales tax. He explores tariff revenue, limits on presidential trade power, lost leverage in deals, alternative authorities, and how tariffs nudge inflation and Fed choices.
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Tariffs Were About Power, Not Revenue
- The IEPA tariff revenue was never the administration's main motive for tariffs.
- Paul Krugman argues the revenue was secondary to gaining executive discretion over trade policy.
Legal Gap Gave Broad Tariff License
- The IEPA statute didn't mention tariffs and gave the president wide discretion to impose them.
- Krugman says that absence allowed Trump to treat IEPA as a license to levy tariffs for political reasons.
Revenue Replaceable, Discretion Is Not
- Alternative tariff authorities may replace lost IEPA revenue but lack the same targeted discretion.
- Krugman notes new options could refill coffers yet won't restore the specific political leverage IEPA provided.