U.S. Treasury Secretary Janet Yellen criticized former President Donald Trump’s universal tariff pledge, stating it would increase prices for American households and weaken the competitiveness of American businesses.
In a speech distributed ahead of a talk at the Council on Foreign Relations, Secretary Yellen remarked that the idea of imposing high tariffs indiscriminately on allies and competitors alike and isolating the U.S. from the rest of the world is significantly flawed.
Secretary Yellen mentioned that if the U.S. were to act alone, it would not be able to enhance its economic and security interests. She pointed out that the challenges facing the U.S., such as supply chain disruptions and China’s overproduction, cannot be addressed by reverting to past methods.
Furthermore, Secretary Yellen emphasized that trade and investment with China could offer considerable benefits to the U.S. and must be maintained, though it is essential to uphold a robust economic relationship based on a fair competitive environment.
She also noted that China’s market access barriers and unfair trade practices threaten the viability of American businesses and increase the risk of over-concentrating supply chains, which undermines the resilience of the global economy.