Treasury Secretary Janet Yellen plans to challenge the idea of implementing sweeping tariffs by labelling them as u201cdeeply misguided.u201d
Yellen’s remarks come as the election approaches, aiming to dissect former President Trump’s tariff-centric policy.
In an anticipated speech at the Council on Foreign Relations, Yellen will highlight the potential inflationary impacts of broad tariffs. She is expected to assert that such measures could hinder American businesses.
The Treasury Department has released excerpts suggesting Yellen’s critique will focus on the economic strains of these tariffs, emphasising their inefficiency in strengthening national economic security.
With economic issues at the forefront of voters’ concerns, Yellen’s speech strategically positions itself just weeks before the elections. This timing underscores the significance of economic strategies in the electoral decision-making process.
Vice President Kamala Harris has previously described Trump’s tariff strategy as a u201cTrump tax,u201d arguing that it would elevate costs for American households.
Yellen will likely argue against unilateral economic actions, noting the global interdependence that necessitates collaborative approaches.
She emphasises that creating barriers with high tariffs against allies is counterproductive.
According to Yellen, working closely with global partners is essential for addressing current challenges such as supply chain disruptions and climate change.
During Trump’s presidency, tariffs were imposed on approximately $300 billion worth of Chinese goods, a move maintained and partially extended by the Biden administration.
Trump’s proposal, if re-elected, includes tariffs up to 20% on all foreign imports, specifically targeting Chinese goods with rates as high as 60%.
Yellen intends to discuss the potential economic downturn resulting from extensive tariffs through increased consumer prices.
She stresses that tariffs might weaken the competitive edge of American businesses, further complicating domestic economic growth.
Yellen also points out the risks of relying on outdated economic policies in the face of modern global challenges.
At the Economic Club of Chicago, Trump defended his tariff plans, presenting them as a protective measure encouraging domestic business growth.
He countered criticism about tariffs’ adverse effects, claiming they would have a u201cpositive, not a negativeu201d impact on the economy.
Yellen is expected to highlight the importance of comprehensive economic strategies over isolated tariff measures.
The focus will be on how integrated policies can better serve national and international economic interests.
Yellen’s speech seeks to challenge the purported benefits of widespread tariffs and advocate for more nuanced economic strategies.
Her address underscores the necessity of global cooperation in navigating complex economic landscapes.
