Yellen Criticizes Trump Tariffs Again, Calls Biden Tariffs "Strategic"

U.S. Treasury Secretary Janet Yellen reiterated that the tariffs proposed by former President Donald Trump, the Republican presidential candidate, would broadly increase costs for domestic consumers and harm businesses. She defended President Joe Biden's tariff policy as very strategic.

[Image source=Reuters Yonhap News]

According to Bloomberg News and others, Secretary Yellen held a press conference on the 20th (local time) in Atlanta, Georgia, stating that Trump's tariff proposal "as I understand it, covers tariffs across the board," and "would affect all trade partners and all trade."

She pointed out, "This would broadly raise the cost of all imported goods purchased by (U.S.) consumers and could harm American businesses." Previously, former President Trump announced plans to impose a 10% tariff on all goods imported into the U.S. and tariffs exceeding 60% on Chinese products. The Peterson Institute for International Economics (PIIE) has analyzed that in this case, the cost burden on the middle class could increase by $1,700 annually.

However, Secretary Yellen evaluated the tariffs newly imposed by the Biden administration in May on key strategic sectors such as semiconductors and clean energy as strategic. She said these tariffs "aim to protect major industries such as electric vehicles, solar power, and semiconductors from China's overproduction," emphasizing that "they will prevent American companies in these sectors from going out of business due to dumping of Chinese exports." She also mentioned that the recent statement by the Group of Seven (G7) leaders opposing China's industrial and business policies indicates that other countries are taking similar measures.

Furthermore, Secretary Yellen explained regarding the Biden administration's decision to maintain the punitive tariffs of up to 25% imposed under Section 301 of the Trade Act by the Trump administration, "Considering that China has actually done nothing to address these concerns, I thought it was inappropriate to remove the tariffs."

Secretary Yellen also hinted at strengthening supply chain cooperation with Vietnam on the same day. Regarding Russian President Vladimir Putin's visit to Vietnam, she stated, "It is not a condition of our partnership that they (Vietnam) sever ties with Russia and China."