Treasury Secretary Janet Yellen is set to caution against proposals for sweeping tariffs, labeling them as 'deeply misguided' and warning of potential inflationary impacts on American businesses. Yellen's critique is aimed at former President Donald Trump's economic policy, particularly his emphasis on imposing steep tariffs.
Yellen is scheduled to deliver her warning during a speech at the Council on Foreign Relations in New York City. The timing of her remarks is crucial as economic issues continue to be a top concern for voters with the upcoming election drawing near. While not directly mentioning Trump, Yellen is expected to argue against across-the-board tariffs and advocate for a more collaborative approach on the global stage.
The Treasury Secretary's stance is clear in her statement that 'Calls for walling America off with high tariffs on friends and competitors alike or by treating even our closest allies as transactional partners are deeply misguided.' She emphasizes that such tariffs would lead to increased prices for American families and reduce the competitiveness of domestic businesses.
Yellen also highlights the importance of international cooperation in addressing various global challenges, from broken supply chains to climate change and pandemic preparedness. She stresses that unilateral tariff actions could hinder efforts to advance economic and security interests, such as countering Russia's actions in Ukraine.
During his tenure, Trump imposed significant tariffs on Chinese-made products, a policy that the Biden administration has largely maintained. In contrast, Trump has proposed even more aggressive tariff measures if re-elected, including tariffs on all foreign imports and specific punitive tariffs on Chinese goods.
Trump has defended his tariff policies, arguing that they are necessary for protecting domestic industries and attracting new businesses to the United States. Despite concerns about increased costs for American consumers, Trump maintains that tariffs will have a positive impact on the economy.
Yellen's warning serves as a reminder of the ongoing debate surrounding trade policies and their implications for the economy. As the election approaches, the discussion on tariffs and international trade is likely to remain a key issue for policymakers and voters alike.
