Trump's Policies Threaten the Future of North America

WHO:

Alternet - Paul Krugman, Nobel economist, and former New York Times columnist.

Paul Krugman | Substack - Jim Jarrell, CEO of Linamar, a manufacturer based outside of Toronto.

Paul Krugman | Substack - Shannon O’Neil, director of studies at the Council on Foreign Relations.

WHAT:

Alternet - Trump has declined to renew the USMCA, the successor to the North American Free Trade Agreement, which he negotiated.

Paul Krugman | Substack - The average tariff imposed by the U.S. on imports from Mexico was only 2 percent before NAFTA went into effect.

Paul Krugman | Substack - The U.S. trade deficit with Mexico was nearly $200 billion for 2025, and with Canada, it was about $46 billion.

Paul Krugman | Substack - Linamar has 37,000 employees and 87 facilities worldwide.

WHERE:

Alternet - The Gordie Howe International Bridge spans the Detroit River, separating Detroit, Michigan, from Windsor, Ontario.

Paul Krugman | Substack - Linamar is headquartered outside of Toronto, Canada.

WHEN:

Paul Krugman | Substack - The USMCA may have been a win-win for the auto industry but has not addressed Trump's concerns about trade balance.

WHY:

Alternet - Krugman argues that Trump's actions undermine the traditional North American economic alliance.

Paul Krugman | Substack - Krugman states that the idea of turning back on the world to add jobs is probably wrong and that the problem with Mexico and Canada is a figment of Trump's imagination.

HOW:

Alternet - Krugman emphasizes the importance of predictable trade agreements for business investment in border-spanning supply chains.

Paul Krugman | Substack - Krugman suggests that maintaining tariffs with a commitment to keep them in place is preferable to rolling negotiations.

(UPDATED July 3, 2026 23:24 UTC)

Trump has decided not to renew the USMCA, which succeeded the North American Free Trade Agreement that he negotiated, a move that has raised concerns among economists like Paul Krugman. Krugman highlights that while the USMCA may have benefitted the auto industry, it fails to address Trump's trade balance worries, arguing that his concerns about Mexico and Canada are unfounded. He stresses the need for stable trade agreements to encourage business investment, particularly for companies like Linamar, which employs 37,000 people and operates 87 facilities worldwide.