According to Krugman,the ideal way for a country to respond when one's competitors are already being supported by government subsidies is probably not to engage in retaliatory action but to:

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Krugman may be right about the danger of a strategic trade policy leading to a trade war.The problem,however,is how to respond when one's competitors are already being supported by government subsidies.According to Krugman,the answer is probably not to engage in retaliatory action but to help establish rules of the game that minimize the use of trade-distorting subsidies.

According to Krugman,the Ideal Way for a Country to Respond