Trump rates are “megalomaniac” and do not affect Brazil as expected, says the Nobel De Economy

For Paul Krugman, Trump’s announcement has no economic justification, acts only as “dictators’ protection program” and will have no serious practical effects, since we are not the main commercial partner of Brazil.

The American economist Paul Krugman used the blunt words to classify Donald Trump’s rates against Brazil.

In a letter sent to Luiz Inacio Lula da Silva (PT), the President of the United States announced a 50% rate on Brazilian exports from 1 August.

In an article published on the Scadack website, Krugman says that these rates represent a “dictators’ protection program”.

According to the expert, who won the economy Nobel in 2008 and is a professor at New York City University, the latest letter from Trump “marks a new direction” of tariff policies, which “Demonic and Megalomaniac” rank.

Krugman understands that the President of the United States “does not even mask that there is an economic justification for his decision”.

“Everything is reduced to punishing Brazil for taking [o ex-presidente] Jair Bolsonaro [PL] to a judgment, “he writes.

At the beginning of the letter addressed to Lula, Trump says: “I met and faced the former president Jair Bolsonaro, and he respected him a lot, as well as most of the other countries in countries. The way Brazil edited the former President Bolsonaro, a leader very respected all over the world, including the United States, is an international shame. This process should not happen.

The economy teacher stresses that this is not the first time that the United States use rates with a political purpose.

“The international commercial system that we established after the Second World War was partly motivated by the belief of American representatives that these exchanges, in addition to being economically beneficial, would have been a peace force and could strengthen democracy all over the world. They were probably corrected and, in any case, it was a noble objective”, Ponders Krugman.

“But now Trump tries to use rates to help another dictator. If you think the United States are one of the” good young people “in the world, this last decision shows the part that we are currently”, adds the teacher.

Why do Krugman think that rates applied to Brazil are megalomaniacs?

To justify the title of “Megalomaniac” which has given to the announcement of Trump, the expert uses statistics of the organization of trade (OMC), which indicate which are the main commercial partners in Brazil.

According to data relating to the year 2022, China is the main commercial partner of our country and receives 26.8% of exports.

The European Union (15.2%), USA (11.4%), Argentina (4.6%), Chile (2.7%) and other countries/blocks (39.3%) are reported below.

Krugman estimates that exports to the United States represent less than 2% of the gross domestic product (GDP) of Brazil.

“Trump really believe that you can use rates to intimidate a great nation, which does not even depend on the US market, to abandon democracy?” Asks.

For the economist, if the United States “still had a functional democracy, this bet against Brazil would in itself be a basis for Trump’s Empaining”.

“Anyway, do not ignore this fact. We are facing another terrible step in the descendant spiral of our country,” he concludes.

Source: Terra

Rose

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