Economist warns Trump tariffs, deportations risk plunging US into stagflation

Nobel Prize-winning economist Paul Krugman sounded the alarm Sunday, warning that Donald Trump’s tariffs and deportation policies are driving the U.S. toward stagflation — a toxic mix of high inflation, weak growth, and rising unemployment. In a Substack essay, Krugman argued that Trump’s economic agenda has already triggered “a significant inflationary shock” while dragging down growth, with only massive investments in artificial intelligence keeping the economy afloat. But he cautioned that if the AI boom falters, the U.S. could quickly tip into a deep recession under the weight of Trump’s signature policies.

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