Treasury Secretary Janet Yellen is poised to deliver a sharp rebuke of former President Donald Trump’s sweeping tariff proposals, which could impose up to 20% tariffs on all foreign imports and even higher rates on goods from China. In her upcoming speech, Yellen will argue that Trump’s protectionist measures are “deeply misguided” and would backfire by fueling inflation and hurting American businesses. Analysts predict that households could face up to $7,600 in annual costs under Trump’s plan.
Yellen will emphasize the dangers of isolating the U.S. from global trade, warning that such policies would reduce competitiveness and damage industries reliant on foreign goods. “Sweeping, untargeted tariffs would raise prices for American families and make our businesses less competitive,” Yellen states, countering Trump’s claims that tariffs will drive companies back to the U.S.
Trump, however, continues to champion tariffs as a core part of his economic strategy, dismissing concerns about rising costs. Speaking at the Economic Club of Chicago, Trump defended his plan, calling tariffs “the most beautiful word in the dictionary” and claiming they would protect U.S. businesses and jobs. He even floated the idea of 2,000% tariffs on foreign vehicles to force companies to relocate to the U.S.
Economic experts, including the Institute on Taxation and Economic Policy (ITEP), have raised alarms about the potential fallout from such policies. They warn of substantial price hikes, economic disruptions, and job losses, with Yellen’s speech expected to highlight these risks. The growing economic debate around tariffs is sure to intensify as the 2024 election approaches, with Trump’s trade policies at the center of the political discourse.
