Paul Krugman

That's estimated to be at about $260 billion.

So let's discuss with Nobel laureate in economics, Paul Krugman.

He is research professor of economics

at the City University of New York's Graduate Center.

Paul, it's great to have you with us.

So let's talk about that, because as we know, when it comes to the tariff revenue, that was an important pillar of the economic agenda of this administration.

If you take out the lion's share of that revenue in the form of these IEPA tariffs, where does that leave that agenda?

Well, I don't actually think the revenue was a key part of the agenda.

I think it was part of the case that the Trump administration made for the tariffs, but I don't think it was really their motivation.

That said, okay, we're looking, I believe now, at losing revenue that's around a

you know, 0.6% of GDP, which is something like a tenth of the budget deficit.

So the budget deficit gets about 10% bigger as a result of this ruling, unless, you know, in many ways, the other stuff that Trump was saying he's going to do is not, from his point of view, a good substitute for AIPA.

But it could replace a good part of the revenue.

I actually think that's all really pretty secondary.

But that's, you know, that...

In some ways, the revenue is the least of the issues.

Well, in your view then, what is the big issue here?

I mean, obviously there's a myriad that we could name, but what comes to mind to you as most urgent?

Well, the reason that Trump went with IHIPA when he was warned that it might not hold up in court, there was a big risk, everybody understood, of what just happened happening.

And the reason he went with that as opposed to other more conventional trade tariffs, aside from the fact that