Yellen set to express concern that extensive tariffs are fundamentally misguided in deliberate critique of Trump's policies
Janet Yellen is set to voice her concerns during a speech at the Council on Foreign Relations in New York City on Thursday afternoon, with economic issues being a significant concern for voters as the election approaches in less than three weeks. Trump has emphasized the need for substantial tariffs as a core part of his political plan, while Vice President Kamala Harris has warned that his tariff proposals would lead to increased prices for American households, labeling it as a "Trump tax."
Although Yellen generally avoids delving into politics, she is expected to criticize widespread tariffs and the "do it alone" approach on an international stage.
"Calls to shield America with high tariffs on both allies and rivals, or treating our closest partners as transactional entities, are fundamentally misguided," Yellen is expected to say, according to excerpts released by the Treasury Department. "Broad, unselective tariffs would increase prices for American households and make our businesses less competitive."
"Moreover, we can't even hope to advance our economic and security interests - such as opposing Russia's unlawful annexation of Ukraine - if we go it alone," she will add. "However, the challenges we face today, from fractured supply chains to climate change and global health crisis preparedness, to China's industrial overcapacity, also indicate that we can't rely solely on old strategies."
Trump implemented extensive tariffs on approximately $300 billion worth of Chinese-produced goods during his presidency. The Biden administration has maintained these tariffs and in certain cases, even expanded them further.
Trump has also suggested that, should he win the election, he would impose tariffs of up to 20% on all imported goods entering the US, as well as an additional tariff exceeding 60% on Chinese imports. Trump has further proposed imposing a "100% tariff" on countries that transition away from using the US dollar.
"The most delightful word in the dictionary is tariff," Trump declared at the Economic Club of Chicago on Tuesday.
Trump justified his tariff proposals when challenged over their potential negative impacts by Bloomberg News Editor-in-Chief John Micklethwait, who argued that it was "just simple mathematics" that the tariffs would result in higher costs for American consumers.
"First and foremost, it's for the security we have here and the new companies that will move into this country due to its growth," said Trump, who argued that tariffs would have a "positive, not negative" impact on the economy.
CNN's Jordan Valinsky contributed to this report.
Despite voicing concerns about the impact of tariffs on economic issues and household prices, Yellen's speech is expected to critique Trump's proposed widespread tariffs as misguided in international politics.
In light of Yellen's anticipated criticism, Trump's justification for tariffs as a means to enhance national security and stimulate economic growth will continue to be a prominent feature in his political plan.
