Nobel Prize–winning economist Paul Krugman says Donald Trump emerged from his Davos speech looking far less formidable than he likely intended, arguing the president’s attempt to bully Europe with insults and tariff threats collapsed in real time. Writing on Substack, Krugman said Trump arrived determined to demean U.S. allies and extract concessions, only to retreat after Europeans refused to cower and instead unified in resistance. Trump dropped his tariff threats for a hollow “framework,” Krugman noted, while European leaders openly mocked his rhetoric and prepared retaliatory measures. The episode, Krugman argued, exposed the limits of Trump’s strongman posture — and showed that standing up to him works far better than appeasement.
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