'Trump attacks any country that doesn't recognize his supremacy,' says Nobel laureate in Economics after tariff hikes against Brazil.

247 - In interview with Folha de S. PaulAmerican economist Paul Krugman, winner of the 2008 Nobel Prize in Economics, harshly criticized US President Donald Trump's decision to impose a 50% tariff on all products imported from Brazil. According to Krugman, the measure goes beyond economic issues and reveals a political use of American commercial power, with authoritarian motivations.

“Brazil had the audacity to insist on judging Bolsonaro, whom Trump clearly sees as a kindred spirit. There is nothing economic about Trump’s letter,” declared the economist. In a recent article published on his personal page, Krugman classified the decision as “malignant and megalomaniacal,” ironically suggesting that the American president was implementing an informal program to protect dictators.

Political retaliation with global impact - Krugman stated that there is no precedent in United States history for the use of tariffs as an explicit form of political coercion. According to him, the Brazilian case is emblematic because it exposes Trump's attempt to impose his hegemonic vision on the world. "I think he feels offended by any country that seems to challenge his vision of US power," he said.

When questioned about the impact of diplomatic relations within the BRICS bloc, especially after the strengthening of ties between Brazil and other emerging countries, the economist avoided speculating about Trump's intentions, but reinforced the punitive nature of the measure.

Defending Bolsonaro and attacking democracy. Krugman also reiterated his criticism of Jair Bolsonaro (PL), pointing to Trump's support as further evidence of the authoritarian affinity between the two. "Bolsonaro is clearly an authoritarian—and trying to overturn an election he lost shows that he doesn't accept democracy when he doesn't like the result," he stated.

According to him, Washington's gesture aims to protect figures who follow an anti-democratic model of power. "Trump has attacked any country that does not recognize his supremacy," he added.

Impact on US consumers and industry - According to Krugman, Trump's tariff policy—which also affects products like copper, essential to industry—goes against any strategy to strengthen the American economy. "He is systematically making American industry less competitive," he warned.

Even though Brazilian exports represent only 2% of the national GDP, Krugman states that the effects could be significant for specific sectors. Products such as orange juice, coffee, and sugar—for which Brazil is one of the main suppliers to the US—could become more expensive in the American market, penalizing consumers.

"Personally, I can live without orange juice and sugar, but messing with coffee is a personal insult," he quipped.

Alternatives for Brazil and market reactions - Faced with trade aggression, Krugman believes Brazil has the tools to respond. "Reciprocal tariffs are, in fact, a relatively effective tool," he assessed, noting that the country has a trade deficit with the US. He also suggested strengthening ties with other markets as a strategic alternative.

The economist also predicts that the Brazilian exchange rate and terms of trade will be impacted, but notes that "this is not a first-order shock." He believes that, in the medium term, Trump's erratic behavior could cause political damage to the government itself. "At some point, the markets will react against this arbitrariness," he concluded.