Nobel Prize-winning economist Paul Krugman pushed back against President Donald Trump’s claims that former President Ronald Reagan “loved tariffs,” calling the statement false and historically inaccurate.
Reagan Repeatedly Emphasized ‘The Virtues of Free Trade’
In his newsletter on Monday, Krugman criticized Trump’s reaction to an ad by the Canadian province of Ontario that used an audio snippet of Reagan denouncing tariffs and promoting free trade.
“Trump claimed that the ad was ‘FAKE' and that Reagan ‘LOVED tariffs,'” Krugman said. “Actually, the ad accurately conveyed the sense of Reagan's remarks, and no, Reagan didn't love tariffs.” Trump has since decided to halt trade talks with Canada over the ad, claiming that it misrepresents the former U.S. President’s remarks.
Krugman, who served in the Reagan administration as a staffer on the Council of Economic Advisers, pointed to Reagan's long-standing support for open markets.
“Reagan did, in fact, repeatedly emphasize the virtues of free trade,” he said, while acknowledging that “like all modern presidents, he nonetheless imposed some tariffs for political reasons. But Reagan always stayed within the boundaries of the law.”
Trump Calls Reagan Ad A ‘Hostile Act’
In a Truth Social post, Trump said that Reagan “loved tariffs for the purposes of national security and the economy,” while criticizing the Ontario Government’s ad as a “hostile act.”
The Premier of Ontario, Doug Ford, has since responded in a post on X, saying that the ad was aimed at sparking dialogue on the impact of tariffs on businesses and workers. He said that his government will be pausing the campaign so that “trade talks can resume.”
Last week, Canadian Prime Minister Mark Carney emphasized the need to diversify its relationships and reduce its reliance on the United States, amid economic challenges due to the tariffs.
“We have to take care of ourselves because we can’t rely on one foreign partner,” he said, adding that his government was “re-engaging with the global giants India and China.”
Photo Courtesy: Mark Reinstein on Shutterstock.com
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