Treasury Secretary Janet Yellen says that ‘untargeted tariffs would raise prices for American families’|@CFR_org|X
Treasury Secretary Janet Yellen warned in a speech that the sweeping, untargeted tariffs proposed by former President Donald Trump would fuel inflation and hurt American families and businesses.
Addressing the Council on Foreign Relations in New York yesterday, she said, “Calls for walling America off with high tariffs on friends and competitors alike or by treating even our closest allies as transactional partners are deeply misguided.”
Not just Yellen
Several economists are concerned that Trump’s proposal for higher tariffs would increase the costs of almost everything, including gas, electronics, autos, and more.
Trump insists that increasing tariffs on imports from countries like China, Mexico and France would earn billions for the American government and boost the economy. However, tariffs are paid by the importer, i.e., American companies, which will hike prices to pass on the extra cost to the consumers.
Analysts estimate that Trump’s plan to impose over 60% tariffs on Chinese imports and 10%–20% taxes on all foreign supplies would add $1,700 a year to a middle-class American household.