US Treasury Secretary Janet Yellen, speaking today at the Council on Foreign Relations in New York, criticized the idea of implementing high tariffs as a way to protect the US economy. She suggested that such a strategy would be counterproductive, leading to higher prices for American consumers and hindering the competitiveness of American businesses.
In her comments, Yellen addressed protectionist trade policies proposed by a politician, without directly naming Donald Trump, who has proposed a significant increase in tariffs on imports. According to Yellen, the United States should avoid returning to unilateral actions that prioritize national interests over global cooperation.
The finance secretary pointed out in particular the possible effects of a steep tax increase, which was proposed to be between 10% to 20% on almost all imports, and up to 60% on goods from China. Trump also mentioned imposing tariffs of up to 200% on some companies, such as John Deere (NYSE: DE ), if they move production to Mexico.
Yellen argued that isolating the United States with high tariffs on both allies and competitors, or treating close partners as purely functional relationships, is a deceptive approach. She warned that broad and indiscriminate tariffs would raise costs for American families and reduce the competitiveness of American businesses.
In addition, Yellen expressed the challenges involved in taking “go it alone” on foreign and economic policy. She suggested that such an approach would be ineffective in advancing US interests, including addressing Russia’s actions in Ukraine, strengthening supply chain security, or countering China’s aggressive industrial policies. .
Yellen also emphasized the importance of maintaining trade and investment with China for the benefit of American businesses and workers, while advocating for a fair economic relationship based on fair competition. She recognized the challenges of China’s market barriers and unfair trade practices, which could adversely affect US and foreign businesses, fuel excesses in key industries, and make producers dependent on chains China supplies.
In her defense of President Joe Biden’s policies, Yellen pointed to targeted tariff increases on strategic Chinese imports such as electric vehicles, semiconductors and solar cells. She noted that US allies are also adopting or considering similar measures, reflecting a growing international consensus that could pressure China into its practices. change their trade.
2024-10-17 19:30:00
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