Nobel Prize-winning economist Paul Krugman argued that the consequences of President Donald Trump’s handling of the conflict with Iran could have long-lasting effects on the United States’ international reputation.

Speaking during an interview on The New Republic’s 'Daily Blast' podcast, Krugman rejected Trump’s claims of success regarding the conflict and contended that Iran emerged in a stronger strategic position while the United States became weaker.

He stated that the ceasefire arrangement reached after the conflict was significantly less favorable than the nuclear agreement negotiated during Barack Obama’s administration, while also highlighting the human and geopolitical costs of the confrontation.Beyond foreign policy, Krugman criticized Trump’s economic narrative.

He claimed that job growth has been slower than during the final years of Joe Biden’s presidency, unemployment has remained largely unchanged, and real wages have been negatively affected by cumulative inflation.He also argued that gains in the stock market should not be credited solely to Trump because similar market increases have occurred globally.Krugman’s central concern was the potential erosion of American credibility on the world stage.According to him, the abandonment of international agreements and uncertainty among allies regarding U.S.reliability could weaken trust that took decades to establish.He suggested that restoring that reputation could require generations of consistent and effective governance.Krugman additionally questioned Trump’s leadership and legacy, describing him as increasingly focused on securing historical validation.

The interview presented a strongly critical assessment of both Trump’s foreign policy and economic record, emphasizing the broader implications for U.S.influence and credibility internationally.