US Yellen: "Trump's 10% Universal Tariff Will Raise Product Prices"

Janet Yellen, U.S. Secretary of the Treasury, expressed a negative stance on the former President Donald Trump's pledge to introduce a 10% universal basic tariff on the 10th (local time), stating that it "would raise the prices of various goods that American businesses and consumers rely on."

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After delivering a speech at Roxbury Community College in Boston, Secretary Yellen told reporters, "In some cases, tariffs are appropriate," while making this statement. This is interpreted to mean that despite the necessity of tariffs, uniformly raising tariffs could actually harm American businesses and consumers. Previously, former President Trump pledged to introduce an additional 10% universal tariff on top of the U.S. basic tariffs to block China's circumvention exports and other measures.

Secretary Yellen explained that the high tariffs on China imposed during the Trump administration were due to China's unfair trade practices and the impact of such unfair trade on the United States. The Trump-style tariffs of up to 25% using Section 301 of the Trade Act were largely maintained under the Joe Biden administration.

On this day, Secretary Yellen said, "We are reviewing the tariff structure," and added, "We may be able to level tariffs in a more strategic way than those previously imposed." However, she did not mention the direction in which the China tariff structure might be adjusted in the future. She also stated, "It is important for the U.S. to diversify supply chains and create good jobs in future industries such as clean energy and semiconductors." Some local media reported that the Biden administration is considering raising tariffs on Chinese electric vehicles and other clean energy products.

Meanwhile, in a speech on the Inflation Reduction Act (IRA), Secretary Yellen stated that inflation has slowed to about 3% thanks to the Biden administration's policies. She emphasized, "America's middle class has wealth, income, and purchasing power that exceed pre-pandemic levels."