Yellen Warns Against Trump's Proposed Tariffs and its Global Economic Impact

Thursday, 17 October 2024, 14:27

Tariffs are a hot topic as Yellen sounds alarm on deeply misguided policies during her speech. She critiques Trump's plans to raise import taxes, warning of inflationary effects and economic disruption. Yellen emphasizes that high, universal tariffs could harm American businesses and alienate allies.
Thehill
Yellen Warns Against Trump's Proposed Tariffs and its Global Economic Impact

Deeply Misguided Tariff Policies Under Scrutiny

Treasury Secretary Janet Yellen's address to the Council on Foreign Relations emphasized the harmful effects of raising U.S. tariffs as former President Trump advocates for these sweeping plans. High tariffs, Yellen asserts, are inflationary and detrimental to American interests. As she stated, calls for increasing tariffs can incur significant risks for the global economy.

Potential Consequences of High Tariffs

  • Prices for American families might significantly increase.
  • American businesses risk becoming less competitive.
  • Alienating allies could pose a risk.

Yellen called for a balanced approach, warning against treating allies as mere transactional partners, thereby underlining that isolating the U.S. would be deeply misguided. Trump's response and proposals for tariffs ranging from 10% to 20% marks a critical moment in the broader trade discussions.

Industrial Sector and Economic Revival

The backdrop includes growing concerns about how tariff hikes may reshape history's narrative about free trade and the U.S. manufacturing sector. Despite the recent legislative efforts fueling optimism, experts note that this so-called renaissance may not materialize, as underlying forces shaping trade dynamics continue to evolve.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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