Remember earlier in his reign as president when he referred to the people of Pakistan as "Pakkies"? Not exactly disastrous, I'll grant, but it didn't help international relations any and it could happen again in a more delicate situation. No matter how intelligent he may be, it's not worth much if he can't convey his ideas properly.
Is not a racist remark in the US. Sorry, he didn't mispeak. Here, "Paki" is no more racist than "Brit" or "Aussie" or "Yankee". The only 'international relations' that it hurt were among our more ignorant allies who use the word in a derogatory fashion.
We do not.
"Well I'm in business, the business of kicking your a$$, and let me tell you...business is boomin'. I'm open for business, the business of givin' you the business...
Soylent Green is my kind of people.