Nobel laureate in economics Paul Krugman stated on August 29 that while Canada's current tariffs on U.S. goods are disruptive but limited in scope, a full escalation involving all tariffs threatened by Donald Trump and Canadian retaliatory measures would essentially destroy the U.S. auto industry. He noted that the current situation is still in a phase where "absurdity outweighs substantive impact," but the future is full of uncertainty.