High tariffs on Bangladeshi clothes disruptive: Paul Krugman

Nobel laureate economist Paul Krugman has warned against imposing high tariffs on clothing imports from Bangladesh.

In an interview with the New York Times, he said, "Putting high tariffs on imports of clothing from Bangladesh is exactly what you shouldn’t be doing. That’s the kind of thing that is disruptive, raises the cost of living for American consumers, does nothing to make us more secure."

The trade economist added, "There is a national security rationale for domestic production, but also for friendshoring and for nearshoring, because the stuff that’s close by is a lot easier to secure. If that’s what we were wanting to do, then we would not be levying tariffs on Vietnam and Bangladesh, and we would certainly not be putting tariffs on Canada and Mexico."

Regarding Trump's trade policy, Krugman said, "Bob Lighthizer is this longtime contrarian, protectionist voice in Washington. He’s generally regarded, among my friends, as a sort of dark, satanic force in the trade policy debate. But he is respected because he clearly knows his stuff. "People assumed he would play a big role in this administration, but he was passed over — and almost for sure, that’s because he is independent. He’s his own man. He didn’t come to this out of fealty to Donald Trump. So he might actually say to the king: No, not tariffs on Bangladesh."